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T H E

MERCHANTS’ MAGAZINE
AND

C O MME R C I A L
J U N E ,

R E V I E W.

1 8 6 8.

AN ENGLISHMAN’S VIEW OP AN INTERNATIONAL COINAGE.
The International Exhibition held last year at Paris, it is well known,
was arranged in sections for each country, all of which emanated from one
common centre. Around this central point was a circular case, in the
compartments of which were displayed specimens of the coins, weights
and measures of the leading countries whence the numerous articles
exhibited around had proceeded. This was, doubtless, a most appropriate
centre for such a widening circle; unfortunately, however, beyond the
mere designation of the objects exhibited, and a label showing the coun­
try where they were in use, but little information was communicated to
the mass of visitors as to the principles (if any) upon which these coins,
weights and measures are based. This portion of the Exhibition, there­
fore, spoke to the eye, but hardly to the mind, a defect which was, how­
ever, in some measure remedied by the assembling of delegates from many
of the countries represented, to discuss the various principles involved in
the several systems. Their deliberations resulted in the expression of an
ardent desire on the part of almost all the delegates to introduce some coin
which should have universal currency, in the hope of thereby diminishing




26

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the difficulties in the way of international traffic. This desire was thus
limited to money alone, which was felt to be a step in the right direction,
if practicable, because the question of some universal standard of. weights
and measures was acknowledged to be attended with greater difficulties,
owing to the complication of system in which some of the countries con­
cerned were involved.
The several delegates parted with the understanding that the one ques­
tion so generally adopted should be recommended by each to the con­
sideration of his government, and this country, and I believe the United
States, have exhibited their readiness to deliberate as to the advisability
of acting upon the suggestion, by the appointment of commissions to con­
sider this idea of an international coinage.
The majority of the delegates were evidently struck with the symmetry
of the metiical system decimally divided. The English delegates, however, were rightly not prepared to go the length of recommending the
adoption of this system, as the question had already been extensively
ventilated, and the supposed advantages of a decimal system had wonder­
fully faded from view on a comparison being instituted between that
system and the one we enjoy, which latter proved itself superior in the
practical points of its adaptability for binary subdivision, and for the com­
mon requirements of traffic, leaving altogether out of view the important
matter of the alteration of fiscal arrangements which would follow upon
the adoption of a decimal system.
In considering the question of an international coinage, one point we
must never lose sight of is, that, if adopted, the coins issued under any
international convention must in every country contain practically the
same amount of the precious metal, or aliquot parts thereof. Now, some
countries have established their moneys upon the basis of a gold coinage,
some upon gold and silver, and others upon that of silver alone. In this
country our coinage is based upon the principle that one pound troy of
gold bullion, containing 22 parts fine gold and 2 parts alloy, shall be
coined into £46 14s. 6d.
Our silver coinage is issued much above its intrinsic value, one pound
troy of silver bullion, containing 11 oz. 2 dwts. of pure silver and 18 dwts.
of alloy (or, in other words, 37-40ths pure silver and 3-40ths alloy) being
coined into 66 shillings. This gives the standard silver in our coins a
nominal value of 5s. 6d. per oz. (the market price of standard silver rang­
ing lately from 5s. Ofd. to 5s. Old. per oz.) the relative value of (pure)
gold to (pure) silver being thus established at 14 1393-4840 to 1.
In France, where they have a double standard and a mixed gold anti
silver currency, the old standard of value is based upon silver, the fivefranc piece being coined out of 25 grammes of their standard silver,




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which contains 9-10ths pure metal and 1 10th alloy. Their gold stan­
dard was fixed by the law of the 7th Germinal, year XI. (1803), accord­
ing to which 155 pieces of 20 francs are coined from each kilogramme of
bullion containing 9-10ths pure gold and l-10th alloy, the relative value
of gold to silver being by law fixed at 15|- to 1.
In Germany they have only a silver standard, Prussia and Bavaria, by
a mutual convention, coining out of 1 mark of fine silver, to which is
added l-9th alloy (making the bullion 9-10ths fine), 14 thalers, or 24
guldens, respectively. Prussia also coins gold Friedrichs d’Or, nominally
worth 5 thalers, (but practically in commercial transactions current for
5 2 3 thalers,) of which 35 contain 1 mark of metal composed of 21 2-3
parts pure gold and 2 1 3 parts alloy. The relative value in the Coinage
of (pure) gold to (pure) silver is thus established as 13 11-13 to 1.
In the United States, several changes have taken place in the standard
of their Coinage. For our present purpose, it is sufficient to state that,
by Act of Congress of January, 1837, the standard of fineness for both
gold and silver coins was assimilated to that prevalent in France, or9-10ths
pure metal and l-10th alloy. The weight of the gold eagle or 10-dollar
piece was confirmed at the same time as 258 grains troy, and that of the
silver dollar as 412^ grains troy. This shows the relative proportion of
gold to silver as 15 85-86 to 1. At the same time, it may be observed
that the silver dollar is altogether in an exceptional position,—coined not
so much for internal circulation as for export to China and the East
Indies,—and is issued by the Mint at 108 cents. Seeing that the halfdollar by law weighs no more than 192 grains, the actual relative propor­
tion between gold and silver may therefore be set down as 14 38-43 to 1.
The Spanish Coinage appears, in the present century, to have under­
gone several modifications. According to “ Martin and Trubner’s Cur­
rent Coins,” 1863, the gold doubloon of 100 reals of 1860 contains
129430 grains of 9-10ths gold. It is, however, chiefly in connection
with the silver dollar that the Spanish currency is so universally knovn.
According to the same authority, the duro or 20-reals piece of 1859,
which is coined of bullion of 9-10ths fineness, weighs 400 623 grains
troy. The relative value of gold to silver is thus established in the
Spanish Coinage as 154765 to 1, being very nearly the same as in France.
Reducing the foregoing principles of Coinage to a common measure of
weight, we find the contents in pure gold of the several moneys named
and their respective values, at the Mint price of £3 17s. 10|-d. per ounce
troy, of 11-12 or standard gold, as follows :
Contents
Value at £ 1 17s. 10}d
pure grs per Troy, ounce standard.

England.— Sovereign..................................................
France.—20 Francs......................................................
Prussia.— Friedrich d’Or................................
United States.—Eagle...............................................
Spain—Doubloon........................................................


http://fraser.stlouisfed.org/
Federal
I Reserve Bank of St. Louis

1 1 3• U016
89 6168
93.9635
232 2000
116.4870

£l

0s od
0 15 10-3388
0 16 5'6542
2 1 1-1611
1 0 7-4025

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O F IN T E R N A T IO N A L C O IN A G E .

The comparison of the silver moneys of the respective countries it is
unnecessary to recapitulate, as it is felt universally that, in future, the
basis of all Coinage must be gold ; and there is no doubt but that this
opinion is not generally entertained, but that in all European communi­
ties it will be, sooner or later, acted upon. A double standard has become
a practical impossibility, for, as Monsieur Emile de Laveleye, in an article
in the Revue des Deux Mondes for April, 1867, very properly remarks,
“ Where a double standard prevails, practically only coins of one of the
two metals from the circulating medium, and from the nature of the thing
this metal must always be that which is the most depreciated in value.”
Let us then see if any means of approximation between the several sys
terns of coinage above referred to exist for the construction of an interna­
tional coinage. Before we enter upon this point, we must clearly see
wha: is implied by an international coinage. Two views of such a coinage
must evidently be held, viz., either one which shall annihilate all, or almost
all, existing systems, by adopting in its entirety some one system already
in existence, or some yet to be invented ; or, on the other hand, one which
after certain modifications in some or all current coinages, admits of the
production of coined pieces which shall be capable of representing exactly
some aliquot part o fcoins of every system. The first of these views may
be at once dismissed from consideration by a simple illustration. The
question of the decimalization of British moneys has been much ventilated
and the opinion that it is capable of introduction into Great Britain hasi
after deliberation, been virtually set aside as impracticable. Consequently’
if this, the lesser alteration, has been found undesirable, it follows that a
greater and more universal alteration is altogether out of the question,
the second view submitted for consideration remains, therefore, as the only
possible solution left to us. If then we look back to the above table, we
find that certain approximations of value exist in the monetary systems
named.
Starting with the British coin of £1, we find—
The French 20 franc piece worth......................................................
Add one fourth, 5 francs.......................................................................

£0 15 10'8388
0 8 11 5834

And we have 25 francs, worth...........................................................
The Prussian Friedrich d’Or (representing really 6 thalers 20
silver groschens).................................................................................
Add four-seventeenths, 1 thaler 10 silver groschen........................

£ 0 19

And we have 7 thalers, worth............................................................
The United States eagle, worth..........................................................
The half eagle (5 dollars)..............................................................
The Spanish doubloon, worth...............................................................

£1
£2
1
1

9'9172

£ 0 16 5 "6642
0 8 10'5068
0
1
0
o

4 -1610
1*1611
6 "5805
7•4 025

Clearly, if we are to have a coin of universal currency amongst these
nations, four out of the five must give way more or less to the necessities




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of the case. Which shall it be ? and what will be the result of thus giv­
ing way? In our humble opinion, for England to give way will be
attended with much more obstacles than would be the case were all the
other nations to embrace her system of valuation. Beside®, standing raidway in the valuation ofher coins between France, the lowest on one hand,
and Spain, the highest on the other, international obligations, as expressed
in present moneys, would suffer a less severe shock. Were the French
system adopted, other nations even now are almost ready to grant
their consent, and yet this would involve for this country an alteration in
the value of the pound of 2.082744d., or nearly £ per cent. As applied to
the national debt, taking this in round figures at £790,000,000, this would
show an amount of £6,912,500 of which the public creditor would be
defrauded But it is well known that this country is the banking house
of the universe, and that a vast proportion of the commercial transactions
of the world are settled in this country. Now the revenue returns for the
year ending 31st March, 1867, exhibit an amount of £730,070 as received
for stamps on bills of exchange an nromisory n_>tes, and £127,847 as com­
position for bankers’ bills or notes, forming together the handsome
sum of £857,917. The duty levied is Is. for each £100, or fractional
part thereof. If we assume that on an average each Is. of duty paid
represents r.o more than £75 of bills of exchange, it follows that the
amount of the bills of exchange in this country subject to duty or the
year was £1,286,875,500. If we further assume that these drafts have an
average currency of three months, it follows that there are always running
£321,718,875 of commercial paper. A depreciation of f- per cen\ upon
this sum is upwards of £2 800,000. The same Returns state that the
amount of property and profits assessed for the year was £364,430,000
A depreciation of the value of the £ will seriously affect this vast sum,
although, of course, not in the same relative propoition as running com­
mercial bills, seeing that property will be worth in the market a higher
amount in a depreciated currency
We will only further allude to bal
ances in the hands ot bankers, to fixid and stated incomes, to bank notes
issued, or to contracts running, all of which would be liable to a deprecia­
tion forming in the aggregate an immense sum. Were this country to
depreciate the £1, the loss to individuals would far exceed anything which
could possibly be the case with all other nations put together. But, fur­
ther, were the French system universally adopted, the relative loss would
be proportionately aggravated in the case of other nations, seeing that
their coins would have to be still more depreciated.
But would the French not be willing themselves to make an alteration?
We fully believe they would offer fewer obstacles than any other nation to
an assimilation of their coinage to the £. They have seen the disadvan­




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tages attending the mixed systems now prevailing; they are the moving
power in the consideration of the present question. They are alive prac­
tically to the objections to a double standard, which has drained their
country of its silver in consequence of the erroneous proportionate value
attached by their law to gold as compared with silver. They are pre­
pared to abolish their double standard, and to discard silver altogether as
a legal tender beyond 50 francs ; and what more ready means could they
find to bring back the errant silver to their country than by adding a few
grains of pure gold to their 20-franc pieces, so as to counteract the baneful
effects from which they have suffered, and which have compelled them to
have recourse to so precious a metal as gold, entailing heavy loss by abra­
sion in such small pieces as those of 5 francs, in order to provide the
means of small change to meet the requirements of the community ? At
the present time 1 kilogramme of gold, of 9-10ths purity, is coined into
155 pieces of 20 francs, i.e., into 6,100 francs, and by a decree of the 8th
April, 1864, a seignorage is charged upon this quantity of 6-70 francs.
W e propose that in future they should coin 1 kilogramme of their bullion
into 3,075 francs only, and let them, if they please increase their s ignorage to 10 francs. Let us compare this proposed new French Coinage
with our existing British money :
Franc*.
1,000 grammes bullion.
In alloy, l-10th deducted.
900 grammes pure gold, = 3,075 francs, or at 25 francs per £ = £ 1 2 $ .
England.
900 grammes pure gold, or
13.890-618 grains troy.
1,262 783 add alloy 1 11th.
15, 53,401 grains troy standard.

Which, at the rate of £46 14s. 6d. for 5,760 grains, represents £122,924,
which is sufficiently near to come within the allowance of remedy.
Were the French to exhibit a readiness to accept such a system, the
Germans would unquestionably join in approximating theirs to that in use
here. They have felt for a long time the inconvenience of a silver stand­
ard. The British sovereign is everywhere in Nor'h Germany freely ac­
cepted as the representative of six and 2 3rds thalers, being at the rate of
three shillings sterling per thaler. A piece of seven thalers would repre­
sent one guinea here. Theirgold Friedrich d’Or might easily be reclaimed
by a coin bearing the name of the “ Wilhelm d’Or,” current for seven
thalers, contain r g 118,G51,685 troy grains pure gold.




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At the present moment the state of the currency in the United States
is peculiarly favorable to any change, seeing that specie payments are sus­
pended ; and any arrangement made by the government in the shape of a
convention to join other nations in the introduction of an international
coinage would, on the part of the States, remain practically a dead letter
until the resumption of payments in specie. There need only be passed
an act of Congress doing away with the existing anomaly of the silver
dollar, issued by the mint at 108 cents, and confining the legal tender (as
soon as the present greenbacks shall be withdrawn in fav r of a metallic
currency) to gold, basing this upon the eagle of ten dollars, and enacting
that the eagle shall weigh 251 grains troy in place of 258, as at pre­
sent required. This would make the value of the proposed eagle, as
compared with our British Coinage, £1*9991, which is sufficiently near to
justify the acceptance of the United States’ dollar as the exact equivalent
of four shillings, and of our sovereign as five dollars, as already adopted
in the British American Colonies. The public creditor would not suffer,
as he would doubtless gladly accept the depreciated dollar rather than
the greenback with which he is threatened, and the community at large
would have time to fall into the changed valuation of the currency with
no greater difficulty than will have to be encountered when specie pay­
ments are resumed.
Amongst the systems before considered, there remains only that of
Spain to remark upon. That unfortunate country has been subjected to
so many alterations of standard, that the people would hail with delight
the adoption by their Government of any system which, from its being
bound up with the more stable systems of foreign countries by an Inter­
national Convention, would, to a certain extent, place their Coinage
beyond the power of their rulers to tamper further with it.
Italy, Belgium, and Switzerland, who have already accepted the French
system, would doubtless follow the example of France should she be dis­
posed to make the change indicated. Greece has already evinced a
desire to join the Powers who have a monetary convention with France.
Portugal. Turkey, Russia, Austria, and Denmark would be unable to resist
the necessity for a modification of their coinage to meet the requirements
of the case, if all other European Powers decide upon the adoption of
International coins; and the smaller German Powers, such as Hamburg,
Bremen, and Lubeck, have already made up their minds that they must
throw in their lot (so far as regards monetary systems) with their giant
neighbour, Prussia.
The American States and Eastern countries, who are bound up in the
Mexican dollar, it will be hopeless to attempt to move, even if it were
prudent, Very little faith, for instance, would be placed in the purity or




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exactness of assay of any gold coins which might be issued by the Mint
of Pekin. The inveterate habits and prejudices of the semi-barbarous
Eastern nations would render it impossible to overcome their preference
for silver at an earlier date than the Greek Kalends, and we need not
await on their account the slow process of their conversion to more
enlightened views. They cannot reason back from effects to causes in
matters of national economy, and will go on their way, until they see
that their interest is really consulted by their modifying their views.
From the preceding observations it is tolerably evident that a general
feeling prevails in the most civilized countries that an effort to effect® rap2)rochement between the populations is considered desirable. It is felt that
possibly some heartburnings may be alleviated if, in the important matter
of money as itpasses from hand to hand, misunderstanding is obviated. But
it is shown, in the foregoing brief investigation, that, to carry into effect
so laudable a design, a great national injustice can scarcely be avoided if
we are to be called upon to modify our £. It is also shown th .t in the
case of France, some change is indispensable from a double standard. To
attempt by law to fix the ratio of value between gold and silver is seen to
be futile; both metals are commodities, the value of which, like that of
all other articles, depends upon supply and demand. As knowledge
grows, and skill and science are brought to bear upon the extraction of
the precious metals from their raw materials, the amount of time, labour,
and expense spent upon the production of any given weight of pure metal
must relatively diminish ; consequently, the more accomplished a nation
becomes, the less value of gold or silver becomes; in other words, the
tendency under such circumstances of the prices of agricultural and man­
ufacturing products is upwards, although this tendency may be in some
degree neutralized and counteracted by similarly applied skill and science
being brought to bear in the relatively cheaper production of such articles.
We thus have the metals on the one hand, and the necessities or luxu­
ries of life on the other, alternately vibrating now in one direction, and
now in the other, and what is true of the metals as compared with other
articles, must, from the nature of the case, be true as between themselves.
The French, therefore, find themselves in such a position that they must
modify their previous legislation. What, then, can be more natural than
for them, whilst carrying this modification into effect, to approximate
their system to that of their British neighbours? And in the matter of
their public debt, see how just it is that they should do so. Their creditors
under their law are entitled to look for payment of their claims in silver
just as much as in gold. But by the course of their legislation they have
virtually driven silver from their realm, and now have only gold to offer
their creditors in satisfaction of their claims. Why should their creditors




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be compelled to accept payment in an article of depreciated value ? Is it
not right and proper, if they insist upon paying by such a medium, that
they should increase the quantity of the metal composing the integer of
their Coinage, so as to meet the justice of the case ? These remarks
apply equally to running commercial bills in France, as well as to all
open balances and contracts, so that no national injustice would be done
if some grains of gold were to be added to the 20-franc piece, as would
be the case were some grains abstracted from the British sovereign.
On the ground, therefore, of justice, as well as of expediency, we hope
we have shown that the desirable end of an International Coinage may
be attained, at least as between Great Britain and France, by the reten­
tion of the British £ as the measure of value, and by the raising of the
French system of money in gold to that value. We have also shown that
the Germans are ready to revise their system, and there can be no greater
objection (putting the matter in its mildest form) to their adhesion to
our valuation, than there would be to their acceptance of the French valution, whilst the advantages they would derive are patent. The reasons
why the United States should follow in the same course are also seen to
be strong, whilst their business relations with this country being so much
greater, their personal predilections should be more in our favor.
By the adoption of the views enunciated, intercourse between civilized
communities would be facilitated, and, as a necessary consequence, feel­
ings of good-will would he promoted at the smallest possible sacrifice of
existing interests.
It is not improbable that at the bottom of their hearts the promoters
of this movement may have hoped to lead mankind at large to the recep­
tion of the grander and more philanthropic idea of universal Coinage,
by which we mean, that the coins of every country should pass current in
all othei countries, but this opens up a much wider field for discussion,
inasmuch as it would inevitably involve the adoption of one universal
system of weights and measures, for the reception of which we apprehend
the world is not yet prepared. In the meantime, a step in the right
direction in regard to International Coinage, as laid down in an Interna­
tional Convention, could not fail to facilitate the larger and more interest­
ing question.




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[June,

THE CURRENUY QUESTION IN THE COMMERCIAL CONVENTION IN BOSTON.
B Y CHARLES H. CARROLL.

I was glad to find that the members of the Commercial Convention in
Boston of last February were generally readers of this M a g a z in e . Hav­
ing had the privilege of presenting a few remarks, as an outsider, to the
Committee on Currency and Finance of that Convention, by their courtesy,
I would like to offer through your pages to the gentlemen who composed
that- committee, snd to your readers generally, some further explanation
of the views which there was not time to elaborate on that occasion.
Several members of the Committee having urged the need of a lower
rate of interest at the West, as a reason for the increase of banks and
currency there, I took occasion to say that to increase currency in relation
to capital is a sure way to increase the rate of interest, as well as general
prices, and that even the supply ot money itself does not change this
law, because interest is not a price for the loan of money merely; it
is the rent of capital. It is not, therefore, currency that is needed at the
West to reduce the rate of interest, but capital, since the more capital
there is the less is its rent, and capital can only be obtained by labor, or
it is the fruit of labor wherever and however obtained.
In support of this doctrine, as to the rate of interest, I presented the
example of California, and stated that money runs away from a high
rate of interest all the world over, as it runs away from that State, where
it is 24 to 30 per cent per annum, to New York, where it is 6 to 9 per
cent; thence to London where it is 4 per cent, and thence to Paris
Hamburg, &c., where it is only 2 or 3 per cent. The question was asked
why, under these circumstances, does money leave California ? I could
only reply, because of the deficiency of other capital there, California is
too poor to retain the great amount of money she produces, the pressure
of business before the Committee precluding any further explanation.
The question of interest is closely connected with the policy of ex­
panding the currency, and is important for a reason the reverse of that
contemplated by the advocates of that policy in the Convention. To
give the subjects of interest and currency, therefore, proper consideration,
let me repeat that interest is the rent of capital—loanable capital—and
capital is as effectually loaned in wheat, or iron, or groceries, or dry goods,
or in any other form, as in money. When goods are bought and sold on
credit, obviously the rent of the capital is considered in the price of the
goods. Interest includes, always, more or less of guarantee against bad
debts ; hence a debt currency, which is a fruitful source of bankruptcy, is
a powerful agency in raising the rate of interest where, from the abund­




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ance of capital, it would be naturally low. There can be nothing more
absurd, as the matter presents itself to my mind, than to expel and repel
money with a debt currency, and thus force the business of the country
into the credit system, with all its needless embarassment and direct cost,
and an increased rate of interest besides.
Money is but one of the exchangeable commodities of commerce, only
that it possesses extraordinary utility as the common equivalent and
recompense in exchange, the demand for which is without limit. To this
utility it owes its value, which varies with the needs and means of payment
of all who desire it, differing in this respect not at all from every other
exchangeable commodity. I agree perfectly with Professor Lieber, that
money existed before government; that it is a commodity; and that,
virtually, there are no such two words or acts as buying and selling;
there is only exchange. The blindness of the public in regard to it seems
to be owing to the interference of legislation in separating the unit of
money from the ordinary weights of commerce by which it was formerly
known and exchanged. Every student of the subject knows that the
British pound sterling was once a pound of silver, and the French livre
the same. Cheating by the governments made these two units the mean­
ingless things they are. Our dollar was originally an ounce of silver, and
the German thaler the same.
Gold or silver offered in exchange, or buried in the miser’s hoard, for
its intrinsic value, is money. Whoever buys a barrel of flour for a gold
eagle is at the same time buyer and seller; he buys flour and sells gold,
and bargains as much for the value of the gold he sells as of the flour he
buys. Whether in bullion or in coin, whether reckoned by ounces or
dollars, until its value is augmented by labor in the arts, as plate, jewels,
&c., gold is money.
The rate of interest is opposed to the value of money. That is to say,
where the rate of interest is high, except momentarily sometimes in the
crisis of a bank contraction, the value of money is low, and vice versa.
Loss by the depreciation of the value of money is just the same in every
respect to its owner, as the loss by the depreciation of the value of wheat
to the owner of wheat. The value of money is as simple an expression
as the value of wheat; it is, of course, its purchasing power, and that can
only be expressed in the thing it purchases. If ten dollars of money
purchases a barrel of flour, so much flour is the value of so much money.
If a bushel of corn exchanges for a dollar, the value of a dollar is a
bushel of corn. Where little money buys much of other things its value
is high : where much money buys little of other things its value is low.
Nothing can be plainer; yet, and although this fact, and the distinction
between the rate
interest and the value of money, have been clearly




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[June,

set forth by the best scientific authority in England—John Stuart Mill—
we find the London Economist habitually calling the rate of interest “ the
value of money.” I cannot suppose this to be the result of ignorance,
but of the curious and unaccountable persistence with which the practi­
cal, so called, and the theoretical, in political economy refuse to become
acquainted with each other. By this misuse of a significant term the
Economist helps to intensify the corruption of the nomenclature of that
science which obscures the subject in the public mind.
Money is capita), if free of hoards. It is exchangeable or circulating
capital, like every other thing that is offered for exchange, and it is wealth
not currency, to the miser. It is wanted everywhere as capital and wealth
“ to serve a purpose and satisfy a desire ” for its purchasing and paying
power, and for its security; functions which nothing else possesses in like
degree or in like convenience and perfection. It finds customers without
effort, wherever it is known to exist; it is the thing promised in debt,
both in and out of the currency, and it makes payment in quality and
value all the world over free from doubt or uncertainty. I say it is wanted
as capital and wealth, not as currency, because as currency it serves only
to make price which adds nothing to value or to wealth. Had we but
one-tenth of the currency we have to day in this country, other things
being as they are, we should have but one-lenth the price of things in
general, but not a particle less of value in our property and not a particle
less of general wealth. We should have, in that case, simply ten times
the value or purchasing power in every dollar of our currency, and, were
such an extreme case possible, it would give us a wonderful advantage in
commerce over every other people on the globe. Who could compete
with us in the production and sale of anything that we have the natural
soil and ability to produce, or the ability to procure ? Who could make
such profits in foreign trade as we ? The barrel of flour costing ten
dollars now, would cost but one dollar then, and we could exchange it,
say with England, for a yard of broad cloth of the present currency value
of ten dollars, which, no matter what might be its price, would cost us
but one dollar, because our imports cannot cost any more than the exports
that pay for them. Could we not then supply France and Germany with
broad cloth cheaper than they could make it? Could we not build ships
and sail them, and supply cargoes, cheaper than any other people ? Who
then but we would cover the ocean with ships and steamers, and conduct
the carrying trade of the world ?
And what prevents us or any otler people from realizing this imaginary
advantage? Simply the irrevocable law of value in exchange, by which
money, as capital, the great object as well as instrument ot commerce to
all nations, flows to the market where its value is the m ost; that is to




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say, where the least money will exchange for the most of other things.
This being so, no folly can be greater than legislating for a supply of
currency, since money itself is naturally in repletion everywhere to pre­
vent any one country or people from having the advantage of others in
international trade, except by the normal exercise of industry and intelli­
gence in producing and cheapening capital.
The more of anything there is produced the cheaper it is, of course ;
but this fall of special value is nevertheless an increase of wealth. The
miners and the State of California are enriched as much by producing
money, although cheapening it all the while, as they would be by pro­
ducing a like value of wheat. This fact stares us in the face in the
rapid strides of that new State to wealth, and puts to shame the specu­
lative theory of certain scholars and writers that money is not capital.
It would be as absurd to oppose the cheapening of money by its increase,
as of Indian corn or wheat by an increase of the crops. But to cheapen
money, as currency, without ii.creasing it, as capital, to compensate the
depreciation and supply the export demand which that depreciation
creates, is quite another thing, that should be restrained as rigidly as
counterfeiting, for it amounts to the same thing in its effect upon the
wealth of the nation. A bank that has nothing to lend, and lends that
nothing in a promise to pay money on demand, creates a fiction, and puts
it into the currency to the degradation of the value of money, and loss
of capital to the community, as effectually as the counterfeiter who does
the same thing, the difference being only in the intention, and in public
credulity which believes in and accepts the one and rejects the other.
This same thing, in principle, has been tried in dealing in wheat in
Chicago: but it lacked that support from public credulity, or, as it is
called, “ confidence,” which is so freely granted in dealing in money
under the name and cloak of banking, a useful and naturally an honest
business, the name of which is used to cover a multitude of sins. The
quality of wheat, as of gold, may be uniform, and determined accurately
by competent inspection, and the supply of various owners may be stored
in bulk of one grade, and delivered in detached parcels, regardless of the
distinction of ownership without injustice to any one. Thus, as every
one knows, wheat is stored and delivered in Chicago. The warehouse­
men issue receipts, or certificates of deposit, as the wheat is received,
and by and on those certificates it is sold and delivered. These men
were not slow to discover that, as wheat was coming and going continually
and keeping their warehouses replenished, they could establish the “ credit
system ” in the business, by dealing on their employers capital, counting
upon an average forbearance of demand, without borrowing or paying
interest for it. In other words, they could issue certificates of deposit




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{June,

for wheat that was never deposited or produced—fictitious bushels of
wheat in promises—cause sales be made by those certificates, and meet
them out of their employer’s supplies.* Some of them did this thing;
how many or to what extent is immaterial, and whether with or without
intentional wrong is also immaterial to our argument, which is concerned
only with the principle, and that is swindling. The Illinois legislature
so considered it, and passed a law enacting that any person who
shall negotiate or put in circulation any such receipt “ shall be deemed
guilty of felony, and, on conviction thereof, shall be fined in a sum not
less than one thousand dollars, nor more than five thousand dollars, and
imprisoned in the penitentiary not less than one nor more than five years.”
Some failures among the warehousemen, I think, brought this law about.
Nevertheless, the same thing is done with money in Chicago and else­
where not only with impunity, but with encouragement. It is popular
among the commercial nations; it is not banking, which is dealing in
loanable capital, but currency making, the illegitimate, fictitious “ credit
system” of the Bank of England. You deposit, say, one thousand dollars
of coined money in a bank, and the bank will promise to deliver it on
demand to four other men as well as to yourself; that is, will lend its
employers capital on the Chicago certificate and Bank of England plau
four times over by discounting, withont borrowing or paying interest for
it, each of the four customers having the same privilege of checking upon
your money that you have, the bank counting upon an average forbearance
of demand, by circulating its debt in the place of money, so that 20 per
cent reserve of specie will enable it to meet these preposterous promises.
Whether the promises are in certificates, i. e., notes issued, or inscribed
credits called “ deposits,” makes no difference; the bank creates a fiction
of dollars of money, as the Chicago warehousemen created a fiction of
bushels of wheat, and with the same effect in degrading the value of cir­
culating capital.
In this country 20 per cent of specie is considered ample for the bank
reserves; in England 33^ per cent; in France, I think, rarely if ever less
than 40 per cent; and the Bank of France,the only currency making insti
tution in that country, is apt to be in trouble at th a t; for France has had
such sharp experience with “ paper money” that “ confidence” is not quite
sufficient there to give it free scope.
If there be any difference in principle or effect between the spurious
wheat traffic of Chicago, now suppressed, and the currency making of
banks, which is encouraged, in degrading the value of circulating capital
to the loss of its owners and the country, I must say that, after many
* Betting on the pvice of wheat is a different thing, because it brings into the market both
buyer and teller simultaneously, and by the same act, an 1 the one balances the other.




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years of careful study of the subject, aided by practical experience in active
business, I cannot see it. The loss fails first upon the owners of the cap­
ital in the local market where the spurious loan is made, and ultimately
is distributed through the country.
“ Everything,” says De Quincey, “ that enters a market we find to have
some value or other. Everything in every case is known to be isodynamic
with some fraction, some multiple, or some certain proportion of every­
thing else.” It is by this law of equivalents, this isodynamic or equal
force and intensity of value, tending to an equilibrium constantly, but
never resting, that money moves from place to place, and that every frac­
tion of capital is attracted by and to every other fraction of capital through­
out the commercial world.
“ New countries are always understocked.” California is understocked.
She has not a sufficiency of other capital to reduce its general or average
value to a level with her natural and large supply of money, or, what is
the same thing, to raise the value of her money to a proportionate or isody­
namic* equivalence with her other capital, and it is impossible that she
should have it, because of her insufficiency of population and productive
power. Hence, capital in general is dear there in money value and real
prices are high ; in other words, money is cheap; and money as cheap
capital leaves California, as wheat and corn leave Illinois, being attracted
abroad by other capital according to supply and demand.
No matter what may be the currency in use in this country, whither
dollars or promises to pay dollars in circulating notes or demand deposits
so far as it is interchangeable with money,or passes for money, it will fol­
low the California rule of running away from dear capital—from the mar­
ket where capital is relatively scarce to the market where capital is rela­
tively plenty—from the poor State to the rich one. The western Atlantic
States cannot retain a dime more of it than will be naturally attracted to
them by their circulating capital; and, if they make a currency of debt
among themselves, that currency will as surely fall into the hands of
Eastern creditors, in the cities where capital is in greater proportion to
currency, as does the surplus money of California. But the result will be
widely diflerent; they send out in such case not money and capital, but
debt and embarrassment, to return and plague them, whereas California
sends money and capital that pays as it goes.
Not that California is ever out of debt to the eastern States. She is com paratively poor, as I have said, and borrows capital of ♦hem, by buying
* Isodi/namic. ’‘Logic of Political Economy,” page 49.
This scholastic term of Mr.
DeQuincey’s aptly defines the equivalence of money. Montesquieu supposed money to be the
equivalent ot all other values combined, which is an error. It is the equivalent of each par
ticular thing for or against which it exchanges; but it is the common equivalent, acknowl­
edges <»n.i a c c e p t by he trading world. This 19 the bo 1« peculiarity of money as nexchange
value, other values are • quivalents, that pay by the higgling of the market but money is
the only universal recompense accepted without question.




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\June,

goods on credit, her surplus money being of no more advantage to her
than an equal value of wheat or of any other suiplus capital is or would
be. But by avoiding a debt-currency she secures exemption for her capi­
tal from a great amount of utterly needless embarrassment, pro and core,
in the notes and bonds of individuals for and against the notes and credits
of banks, required for no purpose but to create and maintain such a cur­
rency, which, in the nature of the case, by expelling and repelling money,
precludes a like amount of sales for cash in prompt exchange. At the
same time she secures the production, export, and exchange for foreign
goods, of large quantities of wheat and other staples that she would not
otherwise produce, because the export demand would fall upon the cheap­
ened commodity money, which would be exported in their stead.
Many a bushel of wheat and of barley, many a pound of wool and
gallon of wine, are produced and exported by California more than she
would produce if the prices and cost of these staples were raised by a
paper currency, since every step in the direction of high prices limits
their market. Her facilities for producing these things are such that,
notwithstanding her cheap money, she supplies them as cheaply, and, be­
ing equivalent thereto in value, they unite with money in the exports.
But let her mix paper with her money, and the first dollar of it will be
an abnormal depreciation of a dollar in the value of her money, which,
there being no new dollar produced to compensate the depreciation and
supply the export demand, will inevitably cause a dollar to be exported
from her pre-existing stock of monev, instead of merchandise. She will
have precisely the same additional price to pay for her imports as if she
had a new dollar to pay it with, and she will lose the money absolutely
in an old dollar by having only paper price, not money value, returned
for it.
California might in this way, by adding paper dollars to her circulating
medium, nearly divest herself of money, and, notwithstanding her vast
production and receipts of gold, come into line with her sister states in
suspension and bankruptcy. It is a wonder to me that she has not been
prevailed upon to do this already—that cunning men have not persuaded
the people of California that they need more “ money” to transact their
business, and that banks have not beer, crowded upon them to borrow
their capital blindly for nothing, and charge them interest upon it, by
calling the instruments of this borrowing “ money.” It is a blind scheme
by which the first principles of justice and common sense in the employ
ment of capital are reversed, and its lenders are made to pay interest to
its borrowers, or rather its takers ; the result being that so much capital
is withdrawn from its owners and the country, and irrecoverably lost.
California needs this sort of thing precisely as much as any of our West-




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425

era Atlantic States, or as any other place in the wide world, and
that she has it not, argues that she is favored with leading minds
wiser than those of Australia where it prevails with a natural excess of
money, and where the list of bankruptcies are unexampled and appalling.
The proportion of wealth, active and inactive, to money in circulation
is naturally about as 25 to 1 ; and when a currency that is a mere me­
dium of exchange and not money, is mixed with money, or, as in our
present experience, takes the place of money, the proportion of wealth to
the whole currency continues the same—that is to say, the aggregate
price of the property of the country is twenty-five times the sum of the
currency. There is in property what is called by an excellent economist,
J. Y. Smith, Esq., of Madison, Wisconsin, “ a greediness of price,” which
secures this result. Every new dollar that enters into the circulating me­
dium is soon taken up in the price of things, and if the dollar is money, the
product of labor that price is value ; otherwise it is price without value.
Mr.Calhoun, in his speech, March 21, 1834, on the recharter of the
United States Bank—one of the most suggestive speeches on banking and
currency, I think, ever delivered in Congress—suggests 1 to 25 or 30 as
the proportion of circulation to the aggregate property of a community.
If by this term “ circulation ” he means to exclude the demand deposits
from the currency I object to the idea and to his reckoning, for it is im­
possible to find the slightest difference in principle or effect between a
bank note and a bank deposit payable on demand. The bank note is but
a check of a bank upon itself—the holder of any sum of bank notes pays
out as much as he has occasion to use at the moment, and keeps the re­
mainder for future use in his iron safe or his pocket. So the owner of a
bank deposit pays out in a check the sum he has occasion for at the mo­
ment, and keeps the remainder for future use in his bank. It is not the
payment, the mere manipulation of the paper, that operates upon the value
of money and the price of things, but the whole sum of the demand debt,
since the whole acts as a purchasing power precisely as the whole of any
commodity in market acts upon the value of that commodity, although
nine-tenths or any other portion of it may be at rest in warehouses and
seeking demand all the while. Every one operates in money or goods
with reference to his means at hand.
As this question of the nature of bank deposits came up in the cur­
rency committee referred to, I desire to be distinctly understood in reference
to it. No one doubts that one thousand dollars of coin and one thousand
dollars of bank notes in your counting house safe, which you are circulat­
ing in various amounts by daily or occasional payments and renewals,
constitute two thousand dollars of currency. Suppose you transfer the
whole sum to a bank, check upon it, and renew the deposit to suit your




27

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426

THE

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[June,

purposes; in what respect is the principle altered or the currency character
of the two thousand dollars changed ? Or suppose your wife takes one
hundred dollars in coin and bank notes to go a shopping, is not this sura
currency! The demand she makes at the shops enters into or is a part
of the average purchasing power of the whole circulating medium of the
country and the world, and tends to raise prices whether she spends any
of the currency or not, and this demand is of course in the one hundred
dollars; for if you did not possess it some one else would, and would
exercise the average demand in it as you do. But your wife meets with
no satisfactory bargains, and the currency is deposited to your credit in
bank. Is it any the less currency than when it was in her hands?
Again, you sell a quantity of coffee for a merchant’s note which you get
discounted, and the net sum of the discount is added to the deposit to
your credit. You check upon this sum as you did upon the coin and
notes. All these items are mixed into one deposit, one power, and one
effect. You make an average use of this deposit, as you make an average
use of the goods in your warehouse, in the operations of exchange; and,
in the long run, there will be a proportional amount and purchasing
power of currency and of goods at rest in this way throughout the com­
munity. Yet all are in circulation, because ail are being offered in
exchange.
As to the word currency there can be but one rule for its interpreta­
tion, and that is very plain. Currency is what and where would be money
under a metallic system of like volume, free of hoards; and it is obvious
that, under such a system, a great, if not the greater, part of the money
employed in trade would be in banks on deposit subject to check at sight;
and another great part would be held by the banks against certificates of
deposit in circulation instead of bank notes. This simple rule distinguishes
currency from the ordinary commercial notes, bills of exchange and ledger
debits, which are of the nature of mortgages on property, and represent
capital as against money when offered in market. No one pretends to
consider a promissory note or bill on time, received for goods, as money.
No one de' its it to his c;sh account, and no debtor holds money in reserve
against his bills running to maturity. The effect of selling such bills in
market is to convey the equitable ownership of so much of his goods or
capital; it is to demand money or currency, and so far to appreciate the
value of money and reduce general prices.
Whereas, if the note is manipulated by a bank, and its proceeds are
mixed with money in a deposit, the sum at the credit of the depositor
acts as it would do under a metallic system on the money side of the ex­
changes, as money or currency against other capital, tending to depreciate
the value of money and raise general prices, directly the opposite of its
power as a promissory note.




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I beg leave to d:ssent from the opinion of John Stuart Mill and the
English country bankers on this point entirely. Under an exclusively
metallic system such bills would exist and be discounted by banks for
money actually in their possession. The bills ifsold would act then, as they
act now, as other capital before the discount, and as money or currency in
their proceeds afterwards. In their nature they are instruments of legiti­
mate credit having no tendency to inflation whatever. The source of
inflation, and of the commercial crisis, is in the nature of the system
which pretends to lend money, but creates currency by discounting such
bills when there is no such money in existence. The English bankers
endeavor by their argument to escape the odium of the commercial crisis,
and cast it upon the increase of credit in overtrading; but they are in
error. Prices are raised by currency, not by simple credit.
In computing the currency, of course, the bank reserves must be
deducted from the total of bank demand liabilities, and placed where they
belong in the reckoning, or we shall reckon the same thing twice over.
Then adding the net sum of these liabilities to the money in circulation,
and now to the outstanding government notes also, we have an amount
of currency that is as 1 to 25 of ihe aggregate price of the property of
this country, as nearly as an estimate can be made. Reckoning thus, by
the aid of the bank returns at Washington near January 1, 1861, I find
the currency in the latter part of 1860 amoun ed to 640 millions of dol­
lars, which sum multiplied by 25 gives 16,000 millions of dollars as the
aggregate price of the property of the country. This corresponds with
the census estimate of 1860.
As London is the settling place or great clearing house of the commer­
cial nations, we can determine by the course of sterling exchange very
nearly the relation of our currency to its natural volume at any time.
Nine and a half per cent nominal premium for sight bills, as every
merchant knows, is the true par of exchange on London. By the latter
part of 1860 sterling exchange had fallen below this point materially,
indicating very clearly that the currency was below the true money volume.
Had there never been a bank note or uncovered demand deposit in exist­
ence, we should have had 640 millions of dollars of gold and silver in cir­
culation at that time unquestionably. As it was, we had but about
$200,000,000 ; 440 millions of money being repelled by the kiting of
debt against debt to maintain a bank currency within the amount natur­
ally belonging in solid money to the capital of the country.
I believe that capital has increased so much that, but for the repulsive
power of the debt currency, we should have at this time 800 millions of
gold and silver in circulation, instead of which we have a mixture chiefly
of poverty and embarrassment, amounting to 1,400 millions, maintaining




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[June,

average prices at 75 per cent above money value, real estate being now in
the greatest fever of inflation, other things having subsided a little to
make room for it.
Now, in view of the ratio of 1 to 25, let us inquire what California would
need to do to retain the gold she now sends away, and we may learn
what any State must do to avoid sending to other States a currency of
debt to her own loss and embarrassment, instead of merchandise to her
profit and advantage. In round numbers the population of the United
States in 1860 was 32,000,000. It will be observed, therefore, that the
average of currency was $20 per capita for the whole country. California
cannot retain so much as this, because she is young in enterprise and
opportunity, and her capital does not equal the average of all the States.
But allow her, for argument’s sake, $20 per capita, and, her population
being in round numbers 400,000, she can retain but $8,000,000 of money
free of hoards. W hat she may retain in hoards is of no consequence to
our argument, as it is of no consequence in commerce, nor in determining
the value of money. The aggregate price and real money value of the
developed property of California is, then, $200,000,000, according to my
computation as 25 to 1 of the currency, and this sum is, I think, an
extreme allowance.
San Francisco receives yearly $50,000,000 of gold, which, the currency
of her State being full, she sends to the Eastern States, and to foreign
countries. To retain this gold California must produce, every year, one
thousand, two hundred and fifty millions of dollars ($1,250,000,000) of
wealth of all sorts, over and above her present annual production. This,
and nothing less than this, as 25 to 1 of the money, will enable her to
retain all this gold. Any one may see at a glance the impossibility of her
doing any such thing, since after eighteen years of great industry in
mining, and in every other sort of production that would present a
promise of profit to the most acute and enterprising people that ever
colonized a country, she has accumulated, altogether, but 200 millions of
property.
Here let me remark that I prefer this method of estimating the wealth
of a community to the most elaborately prepared statistics, since every
portion of wealth, whether in market or out of it, must have an estima­
tion in price, and that price must depend upon and fluctuate with the
volume of the currency. It is possible to make a comparatively satisfac­
tory and accurate computation of the currency of this country from the
ample returns of the banks to the government, intelligent commercial
estimates of the movements of the precious metals, and the treasury report
of its own issues. No other nation is, or ever was, so well supplied with
information in these particulars. Merchants and bankers generally know




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how to keep accounts and state them. But it is impossible to make any­
thing satisfastory out of the figures supplied by the various government
agents, widely distributed over this great country, who are selected, not
for their competency, but for their politics, or the politics of those who
have an interest in finding them employment. Many of these men are
turned into office ignorant of the work they have to do, and turned out
again before they have time and opportunity to learn it, if they would,
by the whirligig of partisan politics which turns upon the rule : “ To
the victors belong the spoils,” ignoring experience and qualification en­
tirely.
The Director of the Bureau of Statistics, Mr. Delmar, in his report to
the Secretary of the Treasury, Nov. 14, 1867, gives some instructive and
amusing examples of the character of government returns that deserve
attention in this connection. Referring to certain tabular statements, of
a few years past, he says :
“ The tonnage returns were swelled with thousands of ghostly ships— ships that
had gone to the bottom years ago. Newport swelle i her coastwise movements with
the daily arrivals and departures of the Sound steamers ; and at some cf the borderdistricts, every time a ferry boat entered and left a slip, her tonnage, against a
standing regulation of the department, found its way into the account of the foreign
entrances and clearances.”
“ The collector of Pembina reported that he had erroneously returned imports for
exports, because he had a felon on his finger.”

The imports for 1861 have been variously reported at $286,500,000,
up to $352,000,000 ; those of 1862, from $205,700,000 to $275,300,000 ;
and minor discrepancies follow in 1863-’4 -’5. The exports of 1861 are
returned in different reports all the way from $227,900,080 to $389,700,000; those of 1864 from $281,800,000 to $320,200,000; and dif­
ferences of smaller amounts occur in those of 1862-’3 -’5.
Now, if the Custom House can do no better than this, what can we
expect of the departments of more recent and imperfect organization ?
In computing the wealth of the country I am better satisfied to rely upon
the currency.
Returning to California experience, we find that State cannot keep her
yearly surplus of money, $50,060,000, in circulation at home, unless she
can make a yearly addition to her property of $1,250,000,000 in money
value.
By the same rule Illinois, for example, could not keep $10,000,000 of
bank currency in circulation, in addition to her present supply, unless
she could simultaneously produce $250,000,000 of wealth of all sorts
over and above the regular production, measuring price by the existing
depreciated currency. And if she produced the wealth she would have
the currency without producing it, because she would sell goods to other




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[June,

States, ancl receive their currency in return. It is beginning at the wrong
end of the operation to make the currency before the capital, because if
. she does so she will buy goods of other States, remit currency, and run
into debt to them, and into difficulty altogether, unless the currency is
itself capital, i. e. money, and then, of course, she will remit the surplus
without embarrasment, and with as much advantage as she would remit
anything else, by paying, instead of running in debt, for the returns.
The population of Illinois numbers at this time, probably, 2,200,000,
and it may be presumed that her capital equals, per capita, the average
of all the Stales. Hence, at $20 a head, she can maintain $44,000,000 of
currency in money, or at par with money and no more: multiplied by 25
this gives $1,100,000,000 as the aggregate money value of the developed
wealth of the State. As all but six or seven per cent, of the wealth pro­
duced in any State, or in all the States, in any one year is consumed in
the same year, the accumulation of $250,000,000 of value, in addition to
the existing wealth of Illinois, must require much time and labor ; but
$250,000,000 of price may be added to that wealth in very little time,
and with very little labor—only so much as is needful to make specula­
tions and promises, or fly-kites of exchanged paper, that by bank dis­
counting will serve for inscriptions of credit to the amount of $10,000,000 1
provided all the other States expand their circulating medium in the
same proportion. But if they do not unite in the expansion ; if they
keep down their circulating medium to its present relation to capital,
Illinois will buy of them in price more than she sells to them ; the
$10,000,000 additional of her currency will be diffused temporarily among
the States, Illinois retaining but her fraction according to capital, and in
due time the whole will return “ to plague the inventor” as surely as
chickens come home to roost. It is utterly impossible for Illinois, in
the long run, to maintain a dollar of currency in relation to capital more
than the other States.
Let us not forget that science is experience classified and recorded, but
its theory is what men think about it, which may be as wide of the truth
as Ptolemy’s doctrine of the immobility of the earth. Illinois has had
ample experience of the truth in this matter of a debt currency, and one
would think might by this time have reduced that experience to science.
By simply exchanging bank liabilities, payable on demand, against the
liabilities of various States, payable, as it now appears, mostly never, she
had accumulated a currency of bank notes and demand deposits amount­
ing to $13,000,000, the banks having only $300,000 of specie to pay it
with. This was the work of nine years—1851 to 1860,and iteulminated
in extensive financial ruin to the banks and people of that State.
This being an addition from time to time to the natural sum of the




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431

circulating medium of the State, by raising general prices and furnishing
“ accommodation” to merchants and farmers, encouraged the holding
over of domestic products which checked production, and the sales of
merchandise to other States, whi e it stimulated purchases from them,
and the consequence was, as I have said it always must be with such a
currency, it took the place of money cheapened by excess, and was
remitted to the credit or cities of the east. Thence it returned mostly in
the traveling bags of banker’s, broker’s and merchant’s agents, who met
with all sorts of evasion and opposition to their demands for payment.
They were told that they were paid already. Was it not money they had
in their bags? W hat more could they want? It is good money, '* well
secured currency,” said th Illinois people, and when some of these agents
could not see it, they were, in certain interior places where a bank was
about as necessary as the Temple of Jerusalem, hustled and mobbed out
of town. This sort of experience ought to show that debt is not mone}7,
and that the promise to pay a thing is not the thing itself. A crash of
baukruptcy sponged the slate of this business.
It is well to observe in this connection that the wealth of a com­
munity naturally divides itself into three fractions, say two-fifths of cir­
culating capital, two-fifths of fixed capital, and one fifth of unproductive,
enjoyable wealth. In the fixed capital I include wealth intended for
productive purposes, but not ready for market, and, therefore, not cir­
culating or offered in exchange. Of these fractions only one, i. e., the
circulating capital, which is in the ratio as 10 to 1 of the currencyi
makes any demand for, or has any influence upon the value of money
that will prevent its export, so that we have only to persevere in the
production of circulating capital to secure the utmost degree of mate­
rial prosperity, and all the value in money or currency that we can
possibly possess. Any scheme to p oduce or procure more money or
currency than will naturally or necessarily be attracted by and to this
circulating capital, except on the California principle for export, is worse
than folly, it is mischief, because it increases debt, wastes capital, and
substitutes poverty and embarrassment for wealth.
And it will be observed that in creating circulating capital we
increase pati passu the other divisions of wealth, into which it dis­
tributes itself by a law that is as certain of obedience as the law of
gravitation; hence, after all, we must put twenty five times the labor
into the production of general wealth that we employ in the produc­
tion or procurement of money, or it will fall in value, and run
away by its depreciation, which, if natural because of the increase
of gold and silver, is a gain of wealth, like the depreciation of breadstuffs by an increase of the erops, that, but for this increase of quan-




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\June,

t i t y would D o t b e exported; b u t i f unnatural, b e c a u s e of t h e in c r e a s e
of “ p a p e r m o n e y ” i t is a loss of w e a l t h , i t m e r e ly r o b s t h e c o u n t r y of so
much pre-existing money and c a p ita l, and we m i g h t as well th r o w s o much
gold i n t o t h e sea.
In conclusion, let me advise the reader to bear in mind the experience
of California and Illinois in the investigation of the currency question ; and
I take leave to enter a caveat against the deductive method of reasoning
on this or any other question of political economy, which is quite too com­
mon ; that is, from theory downward to fact. The opposite or inductive
method, upward from the fact of experience, is, in my view, the true course
to pursue with economical questions. Adam Smith’s method is deductive.
He supposes a wagon way through the air, which “enables the country
to convert, as it were, a great part of its highways into good pastures and
cornfields, and thereby to increase very considerably the annual produce
of its land and labor.” By this downward logic, from the clouds to
the earth, he finds a saving of gold and silver in the use of “ paper
money.” A paper wheel or a paper machine, which costs less than
a metallic one, is another of his metaphors. “ A certain quantity
of very valuable materials, gold and silver, and of very curious labor,” is
thus saved for other uses than distributing the revenue of society among
its members. Looking from the clouds he does not see that these valu­
able materials, gold and silver, form, themselves, like other circulating
capital, a portion of that revenue v\hich is lost by the degradation of their
value through the previous increase of the currency, before “ paper money”
takes their place.
I have the highest respect for Adam Smith’s teaching generally, but
this deductive process of his, to prove the profit and advantage of “paper
money,” seems to me inductive nonsense. When we have a wagon way
in the air, to reason from, which transports goods and passengers with
the directness, celerity and security of railways and earth roads, we shall
doubtless cultivate the ground beneath with profit and satisfaction. When
we find a paper wheel or a paper machine, to do satisfactorily the power­
ful work of a metallic one, miners and metal workers will keep holiday or
starve, perhaps, and then it may answer to accept Adam Smith’s theory
cf “paper money” as scientific truth.

THE POWERS AND RESPONSIBILITIES OF DIRECTORS.
Recent events have not tended to strengthen public confidence in the
good faith of the directors of our large corporations. The exposure of
the internal workings of some of our prominent companies has revealed a




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r e s p o n s ib il it ie s

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d ir e c t o r s .

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condition of things which is a scandal to the business morals of the times.
We have seen directors subordinating the interests of stockholders to
their own temporary speculations in the most reckless manner. Indeed,
to such an extent has this evil grown that they appear to seek their posi­
tion as much for private speculations as politicians seek office for the
sake of bribes and spoils. The position affords peculiar facilities for gain­
ing information upon the affairs of a company which may be turned to
great advantage in the ventures of Wall street; it supplies the loaded
dice of cliques, which, in hands of ordinary skill, generally carry off the
stakes of the gullible “ outside p u b l i c a n d in pursuing this object the
duties and responsibilities of the position are, of course, lost sight of.
When changes occur in the affairs of a company affecting the value of
its stock, the matter is kept a strict secret by the directors until they have
laid their plans for victimizing the stockholders by adroitly using these
facts, which all were entitled to know at once. This use of the superior
information of directors is in the nature of a fraud upon their constituents ;
a fraud of agents upon proprietors. Nor is this the only or most culpable
form of abuse. Directors are permitted to effect loans in behalf of the
company in such amounts and for such purposes as they may please. One
case of this kind is notorious, in which the board of directors borrowed
83,500,000 from one of its members, in a manner which enabled the
lender to use the stock given as collateral for speculative purposes. The
facilities for speculation afforded by this transaction are generally supposed
to have been turned so shrewdly ; that the accumulated profits amount to
almost as much as the loan itself, the public having been mulcted of the
money. This is an illustration of one of the ways in which our railroad
capitalists become millionaires at the expense of the public. We have
seen the directors of the same company, within the last few weeks, guar,
anteeing or engaging to guarantee the bonds of other companies to the
extent of 88,000,000, and indirectly issuing new stock to the extent
of 810,000,000 : and this most secretly and without one word of consul­
tation with the stockholders. Another company has issued, with the
utmost secresy, 84,900,000 of new stock for purposes about which the
stockholders were never consulted and without their authorization ; and
when the question of the legality of the issue was brought into the courts,
the directors, in order to escape the consequences of an unlawful issue^
placed themselves and the effects of the company beyond the reach of
the courts, organized under the laws of another State, and secured from
a foreign legidature, the legalization of their abuse of power. That the
directors speculated themselves in connection with these transactions is
admitted in their own evidence before the courts. These cases are but
illustrations of what is going on upon a smaller scale continually.




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\Jutie,

Is it not high time it were understood whether this sort of abuse of the
powers of directors is to be continued or placed under legal restraint ?
If it is to be continued, then stockholders ought to understand that the
property in which they have invested is under a system of management
which admits of systematic breach of trust; which keeps the shareholder
ignorant of all he is interested in knowing, until the information is of no
avail; which permits in the directors the carrying out of sinister purposes;
which, by conferring large powers upon trustees, attracts into the direction
the most unscrupulous of our capitalists, and tends to bring high positions
of trust into contempt; which, in fine, constitutes chosen agents absolute
masters, and makes the real proprietors tools and dupes. We think all
must agree that this evil is becoming unbearable and should be placed
under check, and the only question is, what are the best means of accom­
plishing that object ?
There are two main essentials in any plan seeking this end—greater pub­
licity respecting the affairs of companies, and a stringent limitation of
the powers of directors or trustees. As to publicity, an annual report
is now about the only in formation communicated by directors to stock­
holders ; and even this is often made up in a partial manner and so as
to conceal what it is especially important should be known. A yearly
exhibit is whollj inadequate for affording the information which a stock­
holder needs in order to judge of the position of his investment. A
merchant who took no further interest in his business than to require
from his clerks a yearly balance sheet would be deemed a singular and very
unreliable man of business ; and it is somewhat of a marvel that so
many should be found willing to put their capital into enterprises the con­
dition and prospects of which they have such meagre data for estimat­
ing. T>ue, some of our railroads are accustomed to issue a weekly state­
ment of their gross earnings ; but even this meagre information is optional
with the directors, and is frequently withheld for speculative reasons
when there a-e any variations of revenue calculated to affect the value
of the stock. The issuing of these statements should be made compul­
sory on every road, and the scope extended so as to include the current
expenses and the net earnings. This, of itself, would afford very important
information, and would tend to hold in check the speculative propensities
of directors. Stockholders, however, have a right to expect an explicit
statement of traffic and finances, made out according to a searching
formula, every quarter. Such an exhibit should especially include every
branch of expenditure and a detailed statement of outstanding temporary
obligations. This would remove the veil of secrecy under which so much
official speculation is now carried on, and by revealing the condition of
the corporations would enable the public to judge of the true value of




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stocks, bespeak confidence in them, and arrest that wild street speculation
in securities which is now productive of such manifold miscliief. It is true
that the law gives to the stockholder the right of examining the books
of the company at will. But of what avail is this right in ordinary
cases ? When the information sought is especially important, the directors
or their agents usually so hamper the enquirer that he has to resort to
legal process to get at the secret. Few are qualified to make an intel­
ligent search of the books of a company ; and fewer care to take the
trouble. Besides, the stockholders have a right to expect, for the sake of their
own convenience and interest, that their agents shall furnish them at fre­
quent and regular periods, a full statement of affairs, and this right
should be duly required by legal enactment.
The chief remedy, however, is to be sought in the limitation of the
powers of directors. The present theory of the railroad law of this State
is that the directors are not agents at will, and subject to consultation and
instruction from their principals the stockholders, but that, for the period
of their office, they are, with but slight qualification, absolute masters of
affairs. Without the consent of the stockholders they can buy prop­
erty or roads, lease other lines, guarantee the loans of other companies,
extend the road, make what they may deem improvements at discretion,
contract loans upon their own terms, and increase the capital stock through
the issue of convertible bonds. What more absolute powers could be con­
ferred upon them ? That such prerogatives are dangerous to the interests
of corporation and of stockholders is too evident from the recent doings
of directors in cases which have attracted much public attention. It would
seem that the case would be fully met by an amendment to tbe general
railroad act providing, among other things, as follows: 1, That no new
issues of stock or of bonds shall be made, except with the consent of twothirds in interest of the stockholders; 2, That all issues of stocks or
bonds shall be made by open tender, and to the highest bidder; 3, That
no purchases of land, or of other roads, and no leasing of other roads
shall be made without such consent; 4, That directors shall not guarantee
the stock, bonds or coupons of other companies, nor extend their track,
nor make improvements involving more than a limited outlay without
such consent; and, 5, That directors shall net borrow money, upon
temporary loan, beyond a certain limited amount, except with such consent.
Under some such limitation of the powers of directors as this, we
should have a speedy end to the abuses which now create so much scandal,
and are sapping the very foundations of judicial honor and probity. We
trust that some of the many influential citizens, who are daily protesting
against this venality in high places, will take the matter up with spirit,
and carry it to the Legislature. Such action on the part of the Chamber
of Commerce would be a proper sequal to its late doings in connection
with the Erie struggle.




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T H E C O N D IT IO N AND P R O S P E C T S

O F TH E SOD TH .

THE CONDITION AND PROSPECTS OP T1IE SOUTH.
In estimating the industrial future of the South, we have no alterna­
tive hut to leave wholly out ot the question the political conditions
affecting its prospects. At present, its ten millions of population are
under military control—the worst possible condition for social and indus­
trial progress—and how long they may remain so is quite uncertain.
A system of reconstruction is now in process of experiment, but two
great difficulties attend i t ; in the first place, it is opposed to the wishes
of the white population, and next, even if generally adopted, it would
be subject to radical rearrangement upon a change in political adminis­
tration. We must, therefore, in any case regard the South as destined to
suffer from an unsettled and unsatisfactory political status tor some years
to come; which is about all that can be said definitely as to the bearing
of politics upon its future prosperity.
Material improvement, however, although necessarily retarded, is by
no means inconsistent with unfavorable political conditions; and there
is reason for hoping that this fact may receive illustration in the imme'
diate future of the South. That section was, as is well known, utterly
prostrated by the w ar; but connected with its prostration there is this
qualified consideration, that its losses received full expression at the close
of hostilities. They were not represented by an enormous issue of obli­
gations to be held by capitalists as a future lien upon the industry of
the people, and could be exchanged abroad for commodities which had
not been earned through actual production. If there was poverty, it
was poverty undisguised by false appearances of wealth, and not only
without temptation to an unjustifiable extravagance and expansion, but
attended with the most effective inducements to effort and industry.
The loss of past accumulations constituted an imperative motive for a
large class, who had previously been idle population, to engage in useful
pursuits, whereby the South gained a new source of ultimate wealth.
The change of condition necessarily involved a temporary interruption
of industry. The transition from slave labor to free required from the>
planters a certain amount of ready means for the payment of wages
which means they had not and could not readily command, in conse­
quence of their loss of credit with the factors. In many cases the home­
steads had been ruined by the army, and in most the appliances for
planting had become dilapidated. The whole system of credit by which
planting and trading were alike conducted was utterly broken down.
Under these circumstances, there was necessarily an extensive interrup­
tion of production, but the great essentials to production remained.
There was still the fruitful land and the waiting labor; labor which, as




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little as the land, was capable of migration to more prosperous sections.
Thus the conditions for making occupation possible existed. For a time,
however, the high cost of living and the tendency toward inaction among
the negroes, following emancipation, necessitated the payment of a high
price for labor, which, together with a burthensome tax upon cotton, and
bad crops, involved a heavy loss to the planters, adding temporarily to
their difficulties. This very poverty, however, necessitated the applica­
tion of a prompt remedy in the employment of the laborers upon easier
terms and under conditions calculated to insure more regular work.
From the close of the war to the present time, the South has been engaged
in restoring the normal conditions of production, and although the pro­
cess is far from complete, yet considerable progress is being made, and
affairs are in a much more promising condition than at any time since
1865. This fact is encouraging, showing that, prostrated as the South
was, it was not so far weakened as to have lost its powers of recu­
peration.
Mistaken inferences are drawn from the present low price of property
in the Southern States. While in the North real estate has about
doubled its former value ; in the South plantation lands and dwellings
do not bring more than one-half to two-thirds their worth in 1860;
from which fact extravagant conclusions are drawn as to the ruined con­
dition of that section. Southern lands are depreciated at present, mainly
from two causes : first, because, owing to the exceptional conditions of
production above noticed, they cannot be made to yield the same profit
as formerly, and next because, from like causes, there are many
sellers and few buyers. The very fact of land being so cheap, however,
is calculated to draw agriculturists from other sections of industrious
habits and with adequate means for farming effectively.
It is worthy of note that, during late months, we have heard fewer
complaints of depression. The negroes appear to be more generally
recognizing the necessity of labor to subsistence, are working for lower
wages, and are steadier in their application to work. The planter’s
family, too, is generally becoming a working part of the community,
fewer hands are employed in domestic duties, leaving a larger proportion
of the negroes to engage in productive pursuits; all of which, though
humiliating to many heretofore affluent, is yet highly conducive to the
restoration of prosperity. Reports as to the condition of the growing
crops are generally quite satisfactory. The cotton crop has been tempo­
rarily put back by ungenial weather, but not to an extent threatening to
affect appreciably the ultimate yield. The planter is now relieved from
the oppressive 24 cents tax, and present probabilities favor the prospect
of a fair profit upon his cotton. The grain crops are said to be very




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[t/wwe,

promising. The unprofitableness of last year’s cotton crop has caused
an enlarged area of iand to be placed under cereals, and it is quite likely
that the South may have a good surplus of breadstuffs for export. Con­
sidering how largely corn and pork contribute to the sum of the
negroes’ wants, it is apparent what an important bearing an abundant
supply of grain must have upon the price of labor and the contentment
of the colored population. Besides, the planters are beginning to under­
stand that they have a ready relief from the temporary derangements
connected with cotton growing, in an extended cultivation of grain crops.
In many sections the land is admirably adapted for grain culture; and
the farmer has the advantage not only of being able to raise the finest
quality of wheat, but also of being in a position to place it in the mar­
ket in advance of the Western crop. His transportation facilities are
equal to those of the Western farmer, and he is about as near to the
large grain markets. If, therefore, the production of cotton be hazardous
through the competition of the India staple, or if it require more capital
than the planter can at present command, there is a ready resource in
resort to the growth of cereals, while the consequent limitation of the
cotton crop would probably enhance the price to a point at which it
would become profitable to increase its cultivation.
Estimating the prospects of the South then, not by comparing the
present with the past, but by what it has ir. the way of land, climate,
labor, experience and transportation facilities, we see no reason why we
should anticipate for it anything short of a steady, sound and healthy
progress. Its white population certainly will not soon regain their
former luxury and extravagance, and its civilization is likely to be
assimilated to that of other sections, with less of sumptuous living
among the wealthy and a more equal distribution of comforts among
the working classes, so that its trade with the North must be regulated
accordingly, that is as respects the character of the goods supplied.
But, if our assumption be true, that the South is now in a position to
produce what will supply moderate wants, and yet leave a surplus for
accumulation, there is, after all, sufficient ground for anticipating hence­
forth a steady trade in the lower and medium grades of merchandise
with the Southern States. And when this recuperative movement is
fairly inaugurated we look for very rapid progress.

PANICS AND PREVENTION.
“ Every financial conflagration,” it has been said, “ is prepared before­
hand. The combustible materials must be first piled up, and not until
that is done will the igniting spark produce the explosion.” No one




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who remembers the great panic of 1857 is ignorant that it was ascribed
to the sudden failure of the Ohio Life and Trust Company on the 24th
August of that year. This incident was but the spark which fired the
train, the exploding compound having long been accumulating. From
this theory of the causation of panics it follows that such desolating
catastrophes are not beyond control. They may be foreseen. They
may be prevented. Their progress may be checked, and each panic
which occurs teaches something to thoughtful men which helps them
to devise methods for averting similar future evils. Not a few of the
incidents disclosed by our recent monetary trouble are worthy of notice
in this point of view, and may be fruitful in cautions and suggestions
bearing upon the present anomalous financial position of this country.
Among these incidents we will briefly cite two or three of the most
prominent. The failure of H. J. Messenger of this city for some half a
million of dollars a few days ago, gave a glimpse of the contrivances,
formerly too common and even yet existing, by which country banks not
under the sharp, keen inspection of the National Currency Bureau, may
be manipulated by a central office in New York, and cf the end of such
combinations when the bubble bursts. Another of the perils of our
financial position was brought to light in the sudden break in Atlantic
Mail last April, with the supposed loss thereby to a leading savings
bank in this city, It was well that the other investments of the bank
were so sound ; and the “ run” upon it seems only to have strengthened
its credit. Better far, however, if the bank had held no Atlantic Mail
shares, nor any e ther securities of less than the highest credit. As
Government bonds constitute now so large a part of the floating secu­
rities dealt in at the Stock Exchange, there is less need than ever for
savings banks to hold, either for investments or as collateral for call loans,
anything but Government bonds. A law placing these institutions under
more severe censorship was proposed at the last session of the Legis­
lature of this State, but failed to pass.
A third fact, and by no means one of minor interest, is forced on
our attention in the late defalcation in the National Hide and Leather
Bank of Boston. It is the old story of a confidential clerk of a bank
placing himself in the power of a speculative schemer; and being thus
led into breach of trust, one defalcation led to another, till neither
the duper nor the duped could tell positively whether the bank had been
robbed to the extent of $100,000, $150,000 or $180,000. Perhaps
the most singular part of the story is that the defaulting cashier
declares with solemn asseverations that he has not had a dollar of the
stolen money for himself, but that he contrived, matured and perfected,
without personal profit, the whole complicated meshwork of frauds, ex­




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\June,

tending over a series of years, requiring an exertion of adroitness and skill
greater probably than all the rest of the bank business, and involving
the forgery of signatures, the mutilation of correspondence, the tamper­
ing with bank books and bank records, and the harmonizing of evidence
from far distant points. Who can wonder if this dishonest clerk, under
the harrassing tortures which had no respite, day or night, has been
struck with incipient paralysis, and has sunk beneath his prodigious
burden of guilt and fear !
What are the practical lessons from these three incidents each of
which represents a class which might be indefinitely extended 1 The
first inference is that the National Banking law is worth all that it costs
the country if by its aegis we are only guarded from such extreme and
unsafe expansion as in 1837, 1847, and 1857 culminated in a general
panic. W e have so often exhibited evidence for the belief that by the
safeguard of the national system the banks are kept within safe limits
that we need not repeat the argument here. Suffice it to say that if
any large part of the banks of this State had been in the condition of
Mr. Messenger’s satellites, and if we had had to ride through the late
gale with such unseaworthy craft, no human power could have saved
us from shipwreck.
Secondly, the national banking discipline, or rather such methods of
inspection and publicity, as it applies to the foundations of the banks,
compelling them to be sound, stable, cautious; and to do good business
or else to close their doors, might be very advantageously applied to
our savings banks, and no time should be lost in bringing about the
needed reform, not only in this State but throughout the country.
Thirdly, the national bank system, much as it has done, is not incapable
of practical improvement. The defalcation of half a million in the New
York City Bank, the previous defalcations at Baltimore and Washington;
with the minor incidents of the like sort here and elsewhere, have stimu­
lated the Comptroller and his intelligent corps of bank examiners to
increased zeal; but the affair of the Boston Hide and Leather Bank
shows that there is need for more care in the work ot inspection, and
for new safeguards against dishonesty. W e are far from thinking that
the blarne rests with the Government inspector exclusively. There
must be hearty co-operation between him and the president, cashier and
directors of each of our national banks before the system can work well.
Still, we have here a fraud successfully carried on for several years—a
fraud which it was the duty of the inspector, as well of the bank
president and directors, to discover and to stop—a fraud which was
so covered up as to elude the vigilance of all except the one culprit in
the bank, and his single confederate outside. Mr. llulburd, we trust,




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will have a complete report made of the transaction, and will print it
for the information of the public that we may get at the exact facts, and
try if a remedy cannot be applied to prevent the possibility of a similar
fraud succeeding hereafter in keeping itself so long hid. “ It must needs
be that offences come,” we are told on the highest of all authorities, but
human experience and human effort must combine to teach us the art
by which offences and crimes of the sort we are discussing may be
transmuted into the means of prevention, and the instruments of safety.

NATIONALIZATION OF THE TELEGRAPH.
W e have frequently had occasion to call attention to the prevailing
tendency to place the larger movements of capital under the direct con­
trol of the. central government. The latest development of this mania
is a scheme for centralizing the direction of the telegraph system of
the country. A measure to that effect appears to have been matured,
and is to be early introduced into Congress. The details of the plan
have not yet been made public, and we can therefore discuss the pro­
posal only upon general grounds.
It is alleged, in justification of the scheme, that the present telegraph
companies are monopolies, that they are selfish and regardless of the
public convenience, that they charge unreasonably high rates for mes­
sages, and leave large tracts of country without telegraphic facilities.
There is nothing new in the character of these charges; they are the
same in principle as those usually urged in defense of governmental
assumptions of power. On like grounds the European governments
take from the people the right to manage their own affairs in their
own way, and constitute the central power a sort of universal guardian,
the people being regarded as minors, and unfit to take care of their own
interests. In the same spirit England, in strange inconsistency with the
aggressive tendency of popular power in that country, even now con
templates the transfer of the railroads of the Kingdom under the power
of the government, and a bill is at present before Parliament proposing
to authorise the Postmaster-General to purchase all the telegrap.h lines
of the country. This proposed substitution of official for individual
responsibility is a proceeding peculiarly strange in this eminently inven­
tive and commercial era, when practical intelligence is believed to have
attained an unprecedented perfection. Now, if ever, it would seem that
the people should be eminently independent of governmental leading
strings, and be granted a carte blanche va. the management of their affairs.




28

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Especially would this conclusion seem to he reasonable under a republi­
can form of government, which is based upon the acknowledgement,
in the broadest sense, of the manhood, intelligence, conscience and gen­
eral social competency of the citizen.
But, to confine ourselves to the more practical inquiry, what reason have
we to expect from the Government a better management of our telegraphs
than obtains under their present corporate control ? Granted, that we
have monopolies in our present system and that our gigantic corporations
t;mporarily defy competition. Does this afford a reason for the concen­
tration of all the companies under one grand monopoly ? The pecuniary
success of our telegraph associations is one of the surest guarantees of
tie extension of telegraph facilities; for it holds out the strongest incen­
tive to the formation of new enterprises. It is invariably found that
monopolies, unless protected by exclusive franchises, beget their own cure
through the inducements they hold out to competition. They may be able
to kill off the earlier competitors, but they are weakened by each successive
attack, and at last they find their equals. Not so with a Government
monopoly. That is omnipotent. It allows no competition; it is subject
to none of the natural laws controlling commerce; and it is equally
independent of the influences which in private enterprises tend to develop­
ment and improvement; and worse still, it is too apt to prove perpetual.
As a choice between monopolies, then, the temporary corporate form is
far preferable to the perpetual national.
Again, what reason have we for supposing that under a national
system the public convenience would be better served than under the pre­
sent organization ? Does it accord with observation that Governments
with large powers are considerate of the public convenience? On the
contrary, are not bureaus notoriously indolent, indifferent, assuming, and
ready to sacrifice the weightiest concerns in their punctilious devotion to
red-tape routine ? A private corporation has a very direct interest in
consulting the public convenience ; for so far as it meets a public want it
augments its business and profits; and any company failing in this
respect affords the wider scope for competition. A government bureau
has no such interest. Its officers are responsible to their superiors, but
for nothing beyond the observance of a fixed routine of duty, which always
adapts slowly, and only after much outside pressure, to the constant
changes in the wants and convenience of the public.
Those who favor the nationalization of the telegraph should be prepared
to show that, under the control of the Government, we should have a
more efficient management of the business than exists under the present
companies. It devolves upon them to prove from the antecedents of federal
administration that officers are always selected with a chief regard to their




1868]

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443

experience and qualifications, that good officers are retained in service,
that clerks and employees are well trained and expert, that they are
held to duty by a sense that their position depends upon their efficiency,
and that the management of bureaus is stimulated by the constant spur
of competing interests. All these things are essential to good manage­
ment ; and yet it is notorious that, from the manner in which the Govern
ment departments are supplied with officers and employees, these qualifica
tions are held in entire abeyance, or that where efficiency exists it comes by
accident. The public offices are filled too frequently without regard to
merit or adaptation. The applicants generally belong to that floating class
of population who find it difficult to succeed in the common competition
for the awards of honest industry, and whose only recommendation is
that they have done questionable service in a political canvas, or are the
friends of a politician. Not only are the qualifications of experience and
general ability ignored in the selection of officers and employees, but
they are equally disregarded as a ground for retaining their services when
a change of administration throws open the bureaus to a new batch of
office seekers. Among public officers and servants there is no esprit
du coips, no professional ambition, and none of the ordinary rewards of
efficiency. Their position is held only temporarily, and is sought in
many cases less for the sake of its legitimate compensation than for its
occasions for making indirect gains. To expect that, under such a system,
we should have an efficient management of an interest so entirely dependent
upon experience, ability and vigilant oversight as telegraphing, would Le
an absurdity.
Besides, the revelations of corruption in the public departments afford
poor guarantee that a gigantic telegraph bureau would be treated otherwise
than as a new source of peculation. Candor compels the assertion that our
political officeholders are not the men to be entrusted with the handling
of the large amount of funds that would pass through such a department.
The purchase of stores, the construction and repair of lines, &c., would
afford ample occasion for officers benefitting themselves at the expense i f
the public. In truth, the scheme promises little else than an increase of
government power and patronage for political purposes. That politicians
should initiate such a project is not remarkable ; but we think private capi­
talists will be slow to sanction the forcible transfer of one of the chief
agents of commerce and civilization from the legitimate sphere of public
competition to the corrupt control of a government monopoly.




441

T H E P O L IT IC A L R EV O L U T IO N IN

EN G LAND.

[June,

THE POLITICAL REVOLUTION IN INGIAND.
It is important that we should not suffer the engrossing character of
the political complications by which commerce and industry are just now
surrounded in our own country, to make us indifferent to the grave events
which are actually occurring, and to the still more grave events which
seem to be preparing, in the political world of Great Britain.
It is unnecessary for us to dwell upon the fact that the interests of
Great Britain and of the United States are destined to be more and more
closely interwoven with every year’s development of either nation. This
fact is obvious to every competent observer of the world’s affaiis, and neither
those who anticipate the predominance of American over English interests
in the markets of the world as a result to be rapidly leached by the com­
pletion of our new system of communication with the East, nor those who
look forward to a protracted tenure of her imperial position by the great
British metropolis, will deny that a serious change in the political constitu
tion of the British Empire must entail upon America, as well as upon
England, social and financial consequences of the greatest moment.
That such a serious and decided change is now actually impending
over Great Britain, we hold to be demonstrable. It was observed, the
other day, by the Pall Mall Gazette, which, though one of the youngest,
has already commanded for itself a general recognition as one of the very
ablest of the London journals, that up to the present time the influence of
the Atlantic cable, upon political matters in both continents, had been
unredeemedly deplorable. The remark may have been a trifle too sweep­
ing, but it is, nevertheless, full of truth. The value of political news sent
from England to America, or from America to England, is contingent
upon the just interpretation of that news by the intelligence of either
nation. The satirical statement of the great economist, Mr. John Stuart
Mill, that so-called “ practical persons,” in his experience were, for the most
part, men who had observed, collected and misunderstood a great store of
facts, has a direct application here. The rapidity with which political items
are now flashed through the u ires, and the curtness with which they are
necessarily stated,,when every word represents a small ingot of gold, com­
bine to make it extremely difficult, not to say impossible, for most men
to form any exact and coherent notion of the significance of the news
which has hardly reached them before its impression is followed up and
effaced by a fresh wave. Brevity, which is the soul of wit, is too often the
tomb of truth. Almost all important human transactions require to be
fully stated, with all their modifications, bearings, and relations before they
can be usefully understood, or their real drift a t t a i n e d .




1868]

T H E P O L IT IC A L R E V O L U T IO N

IN E N G L A N D .

445

The bare announcements, for example, which have reeently from day to
day been made to us, that Mr. Gladstone, as the leader of the opposition
in the English Parliament, has assailed the British Premier, Mr. Disraeli,
on the question of dis-establishing the English Church in Ireland : that the
assailant has carried repeated majorities in the House of Commons : that, in
spite of these repeated majorities carried against him, the Premier still
retains his place, and after consultation with the Queen refuses either to
resign or to dissolve Parliament; these bare announcements, we say, may
suffice to produce the impression that a sharp contest for political power is
going on within the walls of Parliament between two of the cleverest and
most ambitious of living English statesmen. But they do not suffice to
eonvey to the hasty reader of the daily journal, no mattei how well informed
he may be, or how deeply interested in regard to British politics, any just
sense of what we believe to be the truth, that this sharp Parliamentary
contest is only the beginning and the indication of a coming contest on a
wider field, which threatens to assume the proportions of a genuine political
revolution. The existing British Parliament is the last which will ever be
assembled under the existing laws regulating Parliamentary representa­
tion, unless Mr. Disraeli should suffer himself to be forced into, or should
conclude it to be wise to order a dissolution with a fresh election during
the current summer. Should he do so he would inflict almost equal
annoyance upon his supporters and his opponents. An English Parlia­
mentary election involves to each member engaged in the contest, whether
he be elected or whether he be defeated, an extraowlinary outlay of funds.
Cases have been known in which an ambitious candidate has expended
more than one hundred thousand dollars for the pleasure of seeing himself
beaten at the polls ; and it is but rarely that any man succeeds in reaching
a seat at St. Stephen’s without drawing his cheques to a large amount.
Now, as it will be nece-sary next year to make a new appeal to the new
constituencies which will then be called into b- ing by the Reform Bill of
1867,it is clear that neither the friends nor 'he foes of Mr. Disraeli can be
gratified by the prospect of a dissolution which would entail upon them all
the burdens of two electoral contests within a single twelvemonth.
When, therefore, Mr. Gladstone and his maj >rity brought the question
of the disestablishment of the Irish church before the existing Parliament,
Mr. Disraeli took the ground, in resisting Mr. Gladstone’s proposition'!
that while he did not believe a majority of the existing constituencies were
in favor of such a measure, and, therefore, in ordinary circumstances would
not hesitate to dissolve Parliament and “ go to the country” upon the
issue, he felt still more certain that a majority of the future constituencies
to be next year created would take the same view of the case, and that he
should therefore reserve the question for a future decision by them, and




446

T H E P O L IT IC A L R E V O LU TIO N IN

ENGLAND.

{Ju n e,

decline to abdicate under Ih'e pressure of the majority. Although this was
a most unusual course for a British Premier to adopt, the circumstances of
the case also are so unusual that Mr. Disraeli’s conduct in the matter is
applauded even by many of those who dislike him most as a man, and dis­
trust him most as a Minister. It is felt and conceded by liberals who have
no immediate interest in Mr. Gladstone’s immediate advent to power, that
to “ force the hand” of Mr. Disraeli at this time is a blunder, if not in its
way a crime in politics. A dissolution and election under the existing
Parliamentay laws would be a public annoyance and misfortune. A change
of government would also be a calamity, in the face of the fact that the
Disraeli Ministry by which the English Reform Bill bad been passed, or
at least accepted, is now anxious to complete its work by passing the
Scotch and Irish Reform Bills also. Men who feel this, and say what they
feel, are vexed and mortified by the spectacle of a Liberal leader who
shows himself impracticable, impolitic, hot-headed, selfish and greedy of
immediate office, when he has it in his power to strengthen both himself
and his party permanently by resting on his victories, and helping the Tory
government to an easy death.
Mr. Disraeli, on the contrary, is no doubt quite as much delighted as
the supporters of Mr. Gladstone are provoked by the disposition of his
rival; and relying upon a continued term of office until the expiration of
the existing Parliament, he is organizing his forces and his policy for a
future conflict when the new constituencies come into being. And he is
doing this, we repeal*, on a basis and in a way which indicates that he at
least believes the political constitution of England to be on the eve of
undergoing a serious revolution. The new Reform Bill will introduce
into the politics of Great Britain a vast multitude of new voters, variously
estimated at from half a million to a million of men. But no estimate has
yet been made of them, which does not concede to them the power to
swamp the existing constituencies, or, in other words, to make the House
of Commons a representation not of the teritorial, nor of the mercantile,
nor of the financial, nor of the intellectual, but of the numerical force of
Great Britain. Many enthusiastic British liberals anticipate from this
change a fresh impulse to progress in a liberal sense. Other liberals of a
less sanguine or of a more cynical turn of mind, already begin to question
the soundness of such anticipations. Mr. Disraeli evidently relies upon a
widely different result of the great change. The astute and unscrupulous
Premier, who has seen himself elevated to the first rank in the affairs of
the empire by combining the tory aristocracy with the new democracy in
support of a democratic reform bill, plainly believes that he will be enabled
to retain the rank which he has won by combining the new democracy
with the tory aristocracy against the establishment of religious equality in




T H E P O L IT IC A L R EV O LU TIO N IN ’ E N G L A N D .

447

Ireland. “ Justice to Ireland ” is the cry, and a very noble and commend­
able cry it is, of the liberals, whose victories Mr. Gladstone is abusing
But who can be sure that “ justice to Ireland ” will be as potent a cry
with the suddenly enfranchised masses of a strongly Protestant England as
it is with the educated leaders of English liberal thought, and with the
intelligent voters of the upper middle classes in England ? Mr. Disraeli
has been a close observer of men and things in his time. He has seen in
France, if nowhere else, that sudden spasms of democratic fervor may
as often conduce to fortify prejudices, and to establish arbitrary power as to
enlighten politics and to extend true liberty. He knows that in England
Ireland is not loved. Englishmen, and especially Englishmen of the
classes now about to be enfranchised, hate Irishmen, in the first place,
because Ireland has long been oppressed, and there is no dislike so bitter
as the dislike of men who have played the part of oppressors for the men
whom they have oppressed ; in the second place, because Irishmen are
Roman Catholics; in the third place, because Irish labor invades and
cheapens the labor market of England.
When we reflect that all these illiberal possibilities in the temper and
training of the new English constituencies are to be played upon by so
ingenious a politician as Mr. Disraeli, backed by the whole power of the
British Church, which feels that in defending the Irish Establishment it is
really fighting for its own life, and by the whole power of the landed
aristocracy outside the Whig party, which feels that if the endowment prin­
ciple in the church be overthrown, the entail principle in the State must
be the next point of attack ; when we reflect on these things it must be
plain that the political battle to which Mr. Disraeli looks forward is cerlain
to be one of the most fiercely contested and the most dubious which
England has ever witnessed.
And whether it be won or lost by Mr. Disraeli it must inaugurate a
political revolution of which Mr. Disraeli himself, perhaps, hardly foresees
the possible eventualities. For it will give the new constituencies a keen
and formidable consciousness of their power and their importance. It will
introduce into British politics something, at least, of the temper and the
tactics of universal suffrage. It will democratize the intrigues, and, there­
fore, by a fatal and inevitable logic, it will democratize the machinery also
of British politics. It will begin at least to modify the tenure of office in
England by calling into being there a powerful class of politicians hitherto
few and unimportant in numbers on the other side of the Atlantic, but
neither few nor unimportant, alas! among ourselves, to whom politics will
be a trade, and offices a prize. Of such a change as this who can wisely
prefigure the full force and the possible fruits? Neither the fiscal, the
commercial nor the industrial policy of Great Britain can be said to be fixed




448

F O R E IG N

T R A D E W IT H T H E U N IT ED

ST A T E S .

[June,

from the day when, over a million new voters at the polls of England, the
wand of a fierce religious and political excitement is deliberately waved by
the most reckless, if not the most dangerous, public man who has ever
appeared at the head of British affairs since the revolution of 1688.

FOREIGN TRADE WITH THE UNITED STATES.
The last monthly report of the Director of the Bureau of Statistics
enables us to present a tolerably accurate statement of the foreign
trads of the country for a series of months past. The returns for the later
months are subject to slight modification upon the receipt of the monthly
schedules from the Pacific and some of the minor ports; but these changes
will not materially affect the general result. The imports for each
month of 1867 have been as follows :
IMPORTS INTO TH E UNITED STATES IN 1 8 6 7 .

.-------------- Merchandise.---------------, Gold and
1867.
Free.
Datable.
Total.
silver.
Total.
January......................................... $1,004,570 $55,818,879 $96,853,449 $1,111,018 $27,934,417
February...................................... 1,241,853
33,737,833 34,919,685
086.297 35,665,942
March............................................. 2,170,682
29,104,137
32,174,819
605,666 3 ,74 ',488
April.............................................. 1 871,259
87,063,-126 38,939,485
644,038 89,543,523
May...................................
1,692,695
33,593.047 85,285,742
1,820,000
30,695,8:2
June.............................................. 1,659,327
29 572,944
31,232,271
615,033 81,817,304
July...................................
1,255,249
31,982,542
33,',37,791
1,197,893 34,435,684
August.......................................... 1,419,676
31,905,78 3 33,325,464
1,175,831 34,501,295
September..................................... 1,413,521
29,998,714
30,572,235
1.199,606 31,671.841
October......................................... 1,390,631
27.9S6.431 29,377,062
1,262,189 30,639,251
November..................................... 1,462,826
24,022,927
25,485,753
329,203 25,814,958
December...................................... 1,219,873
19,263,448
20,4S3,321
984,924 21,468,245
Tolal imports.........................................................................................................

$383,048,825

These figures, it will be perceived, are for the calendar year, and as
the ordinary official returns are made up for the fiscal year, viz., from
July to July, it is difficult to present an exact comparison of this total
with that of former years. As the best parallell obtainable, however,
we give the following statement of annual importations for the last ten
fiscal years:
IMPORTS INTO T H E UNITED STATES FROM

1857- 58....................................................................
1858-59 ........................................................................
1859 60 ....................................................................
1860- 61................
1861-62........................J 7 . ........................................
1862- 63....................................................................
1863- 64....................................................................
1864- 65....................................................................
1865- 66....................................................................
1866- 67....................................................................

1857-8

Specie.
$19,274,496
7,434,769
8,550,135
46,3-9,611
16,415,052
9.584,115
13,115,612
9,810,072
10,700,092
22,398,345

TO

1866-7.

Merchandise.
$263,338,654
331,333,341
353,616,119
288,319,542
258,941,099
243.335,815
316,447,263
238,745,580
431.812,066
389,924,977

Total.
$282,613,150
338,768 130
362,166,254
335,650,153
275,357.051
252,919,920
829,562,895
248,555.652
445,512,158
41.?,233,322

Although the imports began to decline toward the close of last year,
yet the aggregate for the year is largely in excess of the highest period
before the war, is $135,000,000 in excess of the last year of hostilities,




1868]

F O R E IG N

T R A D E W IT H

T H E U N IT E D

449

STA TES.

and 862,000,000 below the year next succeeding peace, which was far
in excess of the most active year in the history of our trade. There can
be no reasonable doubt that, for the years 1865-66 and 1866-67, the
importing trade was largely overdone, and a period of reaction was to
be expected. The process of contraction appears to have set in with the
preparations for the trade of this Spring, and hence we find the receipts
from November to the present time to have been upon a conservative
scale. The following comparison shows the importations into the United
States (specie included) for the past three months of the current year,
compared with the same period of 1867 :
IMPORTS FOR JANUARY, FEBR U A R Y AND MARCH, 18 6 8 AND

'.8 6 7 .

January................................................................................................
February..............................................................................................
March...............

1868.
$22,543,651
28,785,637
33,038,066

1867.
$27,934,467
3 >,665,942
32,780,485

Total 1st quarter
Decrease 1868................

$84, 67,354
12,313,540

$96,380,894

It is thus apparent that the receipts for the first quarter are at the
rate of $50,000,000 per annum, or 12 per cent less than for the same
period of 1867. This reduction, however, has not been such as to render
the importing trade much more profitable than it was a year ago; so
that it would seem to be fairly presumable that the preparations for the
Fall importation will not be on a scale exceeding the arrivals for the
current season.
W e now turn to the export movement. The Director’s returns pre­
sent that portion of the produce exports usually entered in currency
values reduced to gold; and for the convenience of comparison we shall
therefore give the entire exports in gold values :
EXPORTS OF T H E UNITED STATES FOR 1 8 6 7 , GOLD VALUE.

/— Dr me stic produce.— *
At antic
Pacific
ro ts
ports.
1SG7.
January................................ $27,891,753
$1,008,992
1,108,141
February............................. 29.610,032
March.................................
37,775,064
763,262
April....................................
31,021,884
1,147,350
M ay.....................................
21,362,02)
1,064,106
J u n e ........................... ........
511,582
20,165,9)1
861,400
J u ly .....................................
18,537,087
A ugust................................. 14,385,289
1,617,827
September............................ 1.',745,792
1,384,587
O ctobe................................. 17,867,475
1,652,069
November..........................
24,576,445
1,049,392
December...........................
25,162,125
1,222,433
T otal............................. $281,110,907

$13,891,331

Specie and
bullion.
$3,851,532
3,017,548
2,622,442
3,244,358
1' ,660,713
8,052,403
15,320.293
2,978,081
3,468,334
3,223,066
2,061,272
S,955,060
$67755,092

,— -For re-exports.— .
Merchan­
dise.
Specie..
$190,459
$1,130,364
475,542
1,672 364
397,818
2,037,982
941,688
2,072.138
1,£73,269
5)8,873
843,^08
1,212,792
1,578,173
699,500
980,197
516,396
1,151.937
877,6 8
1,073,881
524,415
911,191
432,839
830,564
755,827
$15,056,179

$8,138,506

RECAPITULATION OF ]ITEMS.

Domestic produce at Atlantic ports..................................
“
Pacific p orts............
Domestic specie and bullion
Foreign merchandise..........
“
specie.....................
Total exports..............




$2S1,100,907
13 891,331
67,455,092
15,056,179
8,138,506
$385,642,015

450

F O R E IG N TR A D E W IT H T H E U N IT E D S T A T E S .

\J u n e ,

It thus appears that the total exports for the year 1867 amounted to
$385,652,015, gold value, against $383,048,825 of imports, showing an
excess of exports amounting to about $2,500,000.
The exports for the first three months of the current year show a
material decline from those of the same period of last year, as will
appear from the following comparative statement :
EXPO ETS FROM T H E UNITED STATES FO E JANUARY, FEBR U A R Y AND MARCH,
1868, GOLD VALU E.

,----------------- 1868.-------------------,
Domestic Domestic Foreign
Months.
produce.
specie, re-expo its.
January.......................... $26,211,837 $7,287,767 $1,779,735
February.......................... 27,134,412 4,005,682 1,119,798
March............................... 26,295,455 3,223,696 1,758,934

1867

AND

,-------------------1867.------------------,
Domestic Domestic Foreign
produce.
specie, re-exports.
$28,900,745 $3,851,532 $1,320,8^3
30,718,173 3,017,548 2,147,906
38,538,326 2.622,412 2,435,800

T otal..........................$79,641,204 $ 4,517,095 $4,658,467 $98,157,244 $9,491,523 $5,604,529
RECAPITULATIO N OF TOTALS.

1868.
Domestic produce............................................................................ $79,641,204
Domestic sp ecie.............................................................................. 14,517.095
Foreign re-exports......................
4,658,467
Total, three m onths.............................................................

1867.
$9S,157,244
9.491,522
5,904,529

$ 98,816,766

$113,553,295

The total exports for the past quarter of the year are thus $98,816,766,
against $116,553,495, showing a decrease of $14,736,529. This falling
off is due mainly to the lower value of our shipments of cotton this
year. The quantity and value of cotton shipped in each of these months
in 1867 and 1868, stands on the Bureau reports as follows:
,------------- 1868.--------------,
Months.
Pounds.
Cur. value.
January.............................................. 109,164,492
$16,691,424
February............................................. 101,723,505
18,018,189
March.................................................. 101,031,453
21,546,685
Total, 3 m ouths....................... 311,919,450

$56,256,293

,--------------1678.------------ ,
Pounds.
Cur. value.
91,662,734
$29,832,988
91,607,260
21,476.413
123,264,739
38,275,314
306,534,703

$97,584,715

While we have shipped 5,400,000 lbs. of cotton during the first
quarter, more than last year, yet the declared value is $41,300,000,
currency, less than then. This heavy falling off in the value of this
staple has been, to a large extent, compensated by an increased value
in nearly all the other exports. It may he of interest, as affording a
criterion of the probable movement of the precious metals, to ascertain
the balance of our foreign trade, so far as indicated in these returns;
we therefore present the following comparison of imports and exports
for the first quarter of the year :
IMPORTS AND EXPO RTS FOR F IR S T QUARTER OF

Imports.
First quarter, 1868 .................................................. $84,067,354
First quarter, 1861 .................................................. 96,380,894

1867

AND

1868.

Exports.
$ 98,816,766
113,553,295

Bxc. of exp’t's.
$14,749,412
17,172,401

According to these figures, the exports for the three months were
$14,749,412, in gold, above the value of the imports. This, however,
is not an infallible indication of the real position of the trade balance.




1863]

T H E C O N D IT IO N O P T R A D E .

451

Much of the cotton sent out was consigned on account of home ship­
pers, and during the late advance on the staple would realize much
higher prices than the invoice value; while, as a rule, consignments of
foreign merchandise to this market have not realised the invoiced price.
Upon the whole, this showing cannot he deemed an unsatisfactory one.

THE CONDITION OF TRADE.
Those who anticipated a prosperous Spring trade, now find that the
event does not square with their hopes. The complaints common in
nearly every branch of the vast distributing trade of this city are evi­
dence that, from some cause or other, business is in an unhealthy con­
dition. W e should hardly construe these murmurs as implying an
extreme depression, or as meaning that trade is generally without profit.
Traders cling to the memory of old times ; they regulate their expecta­
tions by their experiences during and preceding the war ; and anything
falling short of the active business of those days appears unsatisfactory
to them. For this reason every season now brings a disappointment to
the merchant; and it may be years before he forgets to mold his hopes
from a history that is not likely to be repeated within this generation.
There is, however, valid reason for a certain amount of complaining.
Trade is not so prosperous as we have a right to expect even under the
changed circumstances of the country. Capital is not yielding the
average return; enterprise is timid and discouraged; capitalists shun
the risks of trade and production, and prefer letting their means rest
in the Funds to actively employing them in business. The retail trade
appears to be overdone, and goods are accumulating in the hands of
shopkeepers, with consequent loss. Manufacturers complain that they
cannot distribute their products at prices proportionate to the cost of
labor and materials, although relieved of the oppressive internal
duties. In fact, the agricultural interest alone appears to be prosperous.
The high prices of grain, animals and animal products are just now
causing farming operations to be unusually prosperous; but at the
expense of the rest of the community who have to take these products
at such high prices. Nor does the farmer return to other interests com­
pensation proportionate to his increased profits. He is apt to be pen­
urious and hoarding; and instead of investing his profits in the means
of enlarged production he puts them into Government securities, with
no resulting advantage to any but himself.
This condition of things is due very largely to the many derange
merits, social, commercial and financial, growing out of the war. To a




452

T H E C O N D IT IO N

O P TRADE.

[June,

superficial observer it may seem strange that, at the expiration of three
years from the close of hostilities, trade should appear less prosperous
than then. And yet there are reasons for expecting that such would be
the fact. During the height of the war, many new enterprises of an
essentially unsound character were started. In 1865, they were giving
employment to a certain amount of labor and capital, which, though
unremunerative, yet gave a semblance of activity and produced a real
expansion of business. Now, these enterprises are languishing and declin­
ing, with consequent losses to capitalists and discouragement to trade
generally. Again; the war left us with an enormous accumulation of
Government obh'gations in the hands of the people. Simultaneously,
the trade of Europe was in a languishing condition, and foreign capital­
ists were seeking investments as safe and remunerative as the com­
mercial employment of capital. Our people, flushed with the illusion of
inflation, had no idea of contracting their expenditures; and it conse­
quently suited the mood of both parties to make an exchange of bonds
for merchandise. For nearly three years succeeding the war, we have
consequently had an immense importation of foreign products; the dis­
tributing of which has given activity to business. We nave now a reac­
tion from this process from causes operating in both directions. For­
eigners are no longer prepared to take any important amount of our
bonds; and our people are not able, to the late extent, to purchase foreign
goods. Sagacious observers have foreseen that an importation based
largely upon remittances of obligations was destined to a speedy contrac­
tion ; and that result has already come, with a consequent limitation cf
the business of the country. This system of conducting our foreign com­
merce was overtrading in the worst of forms ; for we were buying largely
in excess of our means of payment. W e have given long-dated prom­
ises to pay in settlement, and for the next fifteen years must remit sev­
eral millions of products in payment of the interest—a severe penalty
for our extravagance. The end of this spendthrift policy has not come
one day too soon; and it is well that, at present, we see no worse result
than a temporary contraction of business.
The trade of the country now begins to feel the full effect of opr
onerous taxation. Last year the Government collected $490,000,000
of taxes, $179,000,000 in the form of imports on foreign goods, and
$311,000,000 from internal and direct taxes, a larger amount pro rata
than is levied upon the people of any other country. Nor is the collec­
tion of this large revenue the end of this oppression upon commerce.
A large proportion of the taxes are levied in such a manner as to seri­
ously aggravate the burthens. The duties being imposed upon pro­
ducts in the hands of the importer or manufacturer, and a profit being




1868]

T H E C O N D IT IO N

453

O F TRADE.

charged upon the impost by these parties and by each dealer through
whose hands the goods subsequently pass, there is ultimately an immense
addition to their cost to the consumer. This process is well illustrated
by the Hon. Amasa Walker in the May number of the M e r c h a n t s ’
M a g a z in e . To ascertain the actual taxation imposed by Custom House
duties, he first takes the amount so paid, and to this (in our present
monetary condition) adds 40 per cent for the gold premium, and upon
this aggregate the importer’s profit, which he assumes to be ten per
cent; upon this amount is charged the jobber’s profit, estimated at 7-£
per cent, and the retailer’s at 12£per cent, as follows :
Duties collected in 1867................................................................................
Gold premium paid at 40 per cent.............................................................

$176,417,810
70,667,124

Cost of duties in currency.................................................................
Importers’ profits 10 per c en t.....................................................................

$246,984,934
24,698,493

Jobbers' profit, 7 | per cent..........................................................................

$271,683,427
20,376,257

Retailers’ profits, 12£ per cent..................................................................
Ti tal paid by consumers..................................................................
Duties collected...............................................................................................

$292,059,684
36,507,460
$ 3 S,567,144
176,417,810

Total......................................................................................................

$152,149,334

—equal to something more than 46 per cent of the whole amount paid
by the consumers, or 86 per cent upon the amount received by the
Government.
The same calculations also apply to the internal revenue, except that
no importer’s profits are to be charged. As American goods are gen­
erally of a more staple character than foreign, they naturally pay a smaller
profit, besides they pass through fewer hands, and many of them for a
commission of only 2£ per cent:
Whole Internal Revenue................................................................................
Of this Cotton Tax, Income Tax, Licenses, <fcc., p a y .... $143,4 65,879
Manufactures, iron machinery, &c., pay............................. 122,454,595
Upon these last articles, amounting to ......................................................
The wholesale dealers charge say 7-J per cent.........................................

$265,920 474

_
,
Retadere’ profit 12-J per cent.......................................................................

$131,638,689
16,454,836

T o t a l .. .. . .........................................................................................
Deduct the original cost................................................................................

$148,093,525
122,554,599

Paid in profits on taxes.....................................................................

$25,638,930

265 920 474
122 4 54 ^59 5
9,184jo94

Equal to an additional cost upon the taxed commodities of 21 per cent,
or equivalent to about 9£ per cent upon the whole internal revenue.




i

454

R A ILRO A D E A R N IN G S .

\June,

Thus, with a system of taxation which enormously increases the cost
of commodities to consumers, it is evident that the effect of taxation
must he to severely depress the trade and industry of the country. Our
people had become so habituated to free expenditure, that it required
time to inure them to habits of economy corresponding to this heavy
drain upon their resources. F or a time, therefore, they have been
living upon their accumulations; and it is only now, when they find
their resources materially reduced, that they begin practically to recog­
nise the necessity of economy. On every hand, therefore, we see ti e
beginning of a process of contracting expenditures. Luxuries are being
curtailed ; as an illustration of which we find the piano forte market over­
supplied, and dealers advertising their instruments for sale upon
monthly instalments. Families are refusing to pay the late high rents
for dwellings ; and hence the 1st of May found large numbers of
houses unlet. In every household the question is—how to reduce
expenditures ; and the result is very general complaints from the retail
trade. This process of contracting expenses must go on yet further,
until consumption is more evenly regulated by production ; and then,
but not till then, may we expect a healthier condition of trade. Con­
sequent upon this curtailment of consumption there must be ere long a
diminished demand for labor; which again will work out a reduction
of wages, and a resulting decline in the cost of all products. There is
reason for hope that this much needed reduction in the cost of labor may
be facilitated by an abundant harvest and cheaper food—a boon which
would also tend to the general amelioration of the condition of trade.
Business, moreover, has still to battle with the mischievous tendencies
of an inflated currency, and its concomitant ficticious fluctuations in
prices ; while the exciting agitation of fundamental political issues has
also a very unsettling effect upon commercial confidence. For all
these things, however, time will work out an ultimate remedy ; but, for
the immediature future, it would be to hope without reason to expect
our former average prosperity.

RAILROAD EARNINGS.
The recent prosperity of the agricultural interest has naturally conduce!
to an increased traffic on the railroads. This influence has been fostered
by the premature closing of the canals and the consequent locking up
of some millions of bushels of grain in transit, which has necessitated
the forwarding by rail of a large amount of breadstuffs pending the sus­
pension of navigation. The roads, thus flooded with produce, have been




1868]

455

R A ILR O A D E A R N IN G S .

enabled to make tbeir own terms as to rates of freight, and tbeir earn­
ings for the last four or five months have consequently been almost
unprecedented. From the subjoined returns from fourteen leading roads
it will be seen that the gross earnings for the month of April amount
to $5,521,000, against $4,'764,000 for the same month last year.
GROSS EARNINGS FOR A P R IL , AND FOR T H E F IR ST FOUR MONTHS OF

1867

AND

1868.

,-------- April-------- . ,— Four Months— ,
1867.
1868.
1867.
1868.
$443,029 $421,008 $1,620,064 $1,529,284
282,165
270,3S6
919,745, 1,088.020
774,280 1,068,959 2,802,225 3,467,283
2S0,283
28S,700 1,069,405 1,217,000
440,271
467,754 2,029,332 1,385,381
72,76S
108,461
330,532
380,975
362,783
415,758 1,325,759 1,390,272
391,163
455,983 1,387,869 1,548,257
316,389
435,629 1,220,206 1,488,278
284,729
252,149 1,026,233
961,378
590,557
774,103 2,286,431 2,553,740
168,162
213,097
693,451
661,314
317,052 300,COO* 1,026,149 1,107,764
40,710 49,231
144,457
175,547

Kailroads.
Atlantic and Great W estern........................................
Chicago and A lton........................................................
Chicago and Northwestern.........................................
Chicago, Rock Island and Pacific...............................
Illinois Central.................................. .........................
Marietta and Cincinnati................................................
Michigan C entral.........................................................
Michigan Southern & North’n Ind.. . ...................
Milwaukee and St. Paul................................................
Ohio and M ississip pi..... ..............................................
Pittsburg, Fort Wayne and Chicago..........................
St. Louis, Alton and Teire Haute.............. ..............
Toledo, Wabash and Western....................................
Western Union..............................~ ...........................

$4,764,341 $5,521,218$17,881,858 19,454,493

Total (14 roads).

The April earnings this year show the very large increase of 15^-per
cent over 1867. For the past four months of the year, the earnings of
these roads aggregate $19,454,000 ; which is a gain of $1,573,000, or S^per cent upon the same period of last season. In order to make the
comparison strictly accurate, however, it is necessary to take into account
the difference of mileage at the two periods ; we therefore reduce the
earnings of each road to the average per mile, for the four months, as
follows :
GROSS EARN IN GS P E R M IL E DURING F IR ST FOUR MONTHS OF 1867 AND 1868.

..........
..........

T otal............................................................

1

..........

6,618

<1

..........
..........

/— Miles— /—Earnings—, /—Differ’e-^
1867. 1868. 1867. 1868. Incr.
507 $3,185 53,016 $ ... $179
280 3,284 3,889
605
1,152 1,152 2,432 3,009
577
410
452 2,607 2,692
85
708 2,866 2,663
203
251
251 1,356 1,517
ie i
285 4.652 4,S78
226
524
524 2,048 2,955
307
740 1,649 2,011
362
340
340 3,018 2,827
191
488 4,885 5,456
571
210 3,302 3,149
153
521 1,971 2,126
521
155
180
802
975
173
ojo

Railroads.
Atlantic & Great W estern...............................
Chicago and Alton............................................
Chicago and Northwestern................... . . . .
Chicago, Rock Island & Pacific............ .....
Illinois Central..................................................
Marietta and Cincinnati.............................. .
Michigan Central..................... . ...................
Michigan Southern & Northern Ind...............
Milwaukee and St. Paul................. .................
Ohio and Mississippi........................................
Pittsburg, Ft. Wayne and Chicago..................
St. Louis, Alton and Terre Haute...................
Toledo, Wabash and W estern.......................
Western Union..................................................

82,939

$219

By the above table we find that, for the four months, the gross earn­
ings average $2,939 per mile, against $2,720 per mile for the correspond­
ing months of 1867, the gain averaging 8 per cent. As there is no




* Estimated.

456

[June,

R A IL R O A D E A R N IN G S .

reason for supposing that the working expenses of the roads have been
increased materially, in connection with this enlarged traffic, it is to be
presumed that their business this year has been unusually profitable.
It is easy, however, to draw erroneous conclusions from the enlarged
earnings of the roads. We not unfrequently see these increased totals of
current gross earnings paraded by the side of those of six or seven years
ago, for the purpose of showing the large improvement in the value of
railroad properties. Such a comparison, however, ignores very important
elements involved in this question. For instance, if railroads have
doubled their gross earnings since 1862, it is very obvious that there
has been a necessity for the change, in the largely increased expenses of
running and management. It is evident from a comparison of the
increased cost of materials and labor in even branch of industry, that the
expenses of the roads must have been well nigh doubled within the last
few years; and this consideration must obviously be set off against the
gain in the gross earnings. The question to be ascertained then is, what is
the proportion between the gross earnings and the expenses of the two
periods? In order to elucidate this point, we have compiled the appended
tables, showing the earnings and expenses of fourteen principal roads in
1866 or 1866-7, compiled from the latest published reports, and giving
like statistics from reports issued in 1862, and representing the traffic of
1861-2:
EARNINGS AND EXPEN SES OF FOURTEEN P R IN C IP A L RAILROADS IN

Chic. Bur. & Quincy, 1866-7.......
Chicago & Northwestern, 1866-7..
Clevlaud, Columbus & Cmn, 1866,
Michigan Central, 1866-7............
New Y ork Central, 1866-7.......... .
New York & ;sew Haven, 1S66-7.
Central of New Jersey, 1866.........
Chicago <fc Alton, 1866..................
Illinois Central, 1S66.....................
Ohio & Mississippi, 1S66............
Toledo, Wabash & Western, 1S66.
Erie, 1865-6.................................... .
Hud-on River, 1866........................
New York & Harlem, 1866.......

1S66-7.

Gross
Ex­
earnings.
penses.
$6,083,000 $3,093,1 oo
10,161,000
7,lu3,000
1.933.000
1.254.000
4.325.000
2,S2G,tt(lO
13.979,000 lu.053,000
2.068.000
1,364,00»
3.581.000
1.963.000
3.695.000
2 .210.000
6.546.000
3,94 1.000
3,38.»,00)
2.9.9,01)0
3.717.000
2,811,010
15,372,000 12.083,000
4,8)5,000
3 090,000
2.783.000
1,661,000

Net
earn ngs.
$2,990,000
3.058.000
679,0( 0
1.499,0(0
3,326,0C0
704.0 0
1.618.000
1.455.000
2.602.000
451.000
906.000
3,$89,000
1,7.55,01 0
1,119,000

Total (14 roads).................................................... ........ $82,468,000 $56,987,000 $25,481,000
Miles of road ownea& leased by 14 comp’s ..........................
5,254 miles
$15,696
$10,816
$4,850

A v e ra g e p er m ile.....................................................................

The following table shows the annual business of the same roads for a
period five years antecedent:
EARN IN GS AND EXP EN SES OF FOURTEEN PR IN C IPA L RAILROADS IN

1861-2.

Gross
Net.
Eainings. Expen e. Earnings.
Chicago, Burlington ar.d Quincy........ .................................... $2,412,000 $1,073,000 $1,339,000
Chicago and Northwestern (242 miles)..................................
1.083.000
637.000
448,000
Cleveland, Columbus, and Cincinnati............ ....................... 1.724.000
668.000
1,056,< 00
Michigan Central............................. ......................................
2.946.000
1.272.000
1.674.000
New lo r k Central..................................................................... 9.356.000
5.667.000
3.689.000




1868]

r a il r o a d

EARNINGS.

New York and New Haven................................
Central o f New Jersey......................................... .....................
...................
...................
Ohio and Mississippi (192 miles)........................
Toledo, Wabash and Western (242 miles).......... ...................
Erie ...................................................................... ...................
Hudson River....... ...................................................................
New York and Harlem....................................... .....................

457

Gross
Net
Earnings. Expenses. Earnings.
582.000
454.000
1,397.000
751.000
646.000
708.000
1,225,000
457.000
1.615.000
3^445,000
1.830,000
337.000
797.000
938.000
950.000
1.938,000
3.539.000
4.861.000
8,400,000
2,730,000
1.362.000
1.368.000
456.000
1,154,000
698.000
$21,743,900 $18,237,000
3,809 miles.
$5,708
$4,788

Total 14 roads................................................
Miles of road owned and lea ed by 14 comp___
Average per m ile.................................................

The annual gross earnings of all these roads in 1866-7 amounted to
882,468,000, against §39,980,000 in 1861-2, an increase of 106 per cent.
The expenses aggregated $56,987,000, against $21,743,000 in 1S61-2, an
increase of 162 percent. The net earnings were $25,481,000, against
$18,247,000 in 1861-2, an increase of 41^ per cent. In 1866-7 the
expenses were 69 per cent of the gross earnings; and in 1861-2 54J per
cent. Jo this extent, the showing for 1866-7 is decidedly unfavorable
as compared with 1861-2. Here, however, it is necessary to take into
account the changes in the mileage of the roads. In the earlier period
under comparison, these companies owned and leased 3,809 miles of
road; in the latter, 5,254 miles. The yearly earnings and expenses of
all the roads combined averaged per mile, for the respective periods, as
follows:
Gross earnings. Expenses. Net earn.
1861-2........................................ .................................................... $5,708
$4,788
1800-7................................................................................................ 15,096
10.846
4,850
Increase in 1866-7..................................................................... $5,200
Increase per c e n t.............. .................. .................................
50

$5,138
90

$62
1>1

It thus appears that while the gross earnings have been increased
from $10,496 per mile to $15,696 per mile, a gain of 50 per cent, the
expenses have grown from $5,708 per mile to $10,846, an increase of
90 per cent; while the net earnings show an average gain of $62 per
mile, or 1-J- per cent. Virtually, therefore, the net earnings of the roads
are about the same per mile as at the beginning of the war. It should
be stated, however, that these roads have now about $7,000,000 more
net earnings to be devoted to the purposes of construction, interest and
dividends than they had in 1861-2. But, on the other hand, the costs of
construction have been doubled, the bonded debt of many of the roads
has been increased, and a very large addition has been made to the share
capital. Of course the unusually large earnings of the last four months,
shown above, place the finances of the roads in a better position financially
than they held in 1867. We leave our readers to determine how far these
considerations should temper the current estimates of the value of railroad
securities.




29

458

T H E C H IN A TR A D E .

[tTune,

THE CHINA TRADE.
NUMBER I .

“ This mission,” said Mr. Burlingame, in rather oracular explanation
1o his San Francisco entertainers of the purposes of his Embassy, “ means
progress.” Without giving way to unreasonable hopes, we may well be
inclined to accept the sign in this sense, and to enquire in what manner
and to what extent this progress is to reach and affect the commercial part
of the world, of America especially, which has heretofore divided with
the diplomatists and the missionaries, (taking the lion’s share) the inter­
course, limited as it has been, that has taken place between the Western
nations and the Chinese.
The diplomatists have until recently been engaged in a long and weary
struggle, by chicane and force alternately, to fasten upon a powerful and
elaborately civilized nation, a foreign policy of which it recognized the
injustice. Resistance to that policy was baptized “ Oriental duplicity.”
The missionaries have labored, for the most part with zeal and fidelity,
in a fruitless field. To people who not only believed but practiced a
morality which was old when Christianity was born, it was naturally not
easy to appeal in favor of a religion the mass of whose professors, so far as
the Chinese saw them, did not practice but only believed its precepts.
Commerce has been practically limited, on the one hand, to the capacity,
always increasing, of Europe and America to consume the teas, silks and
other products of China; on the other, to the disposition and ability of
the population embraced within a narrow area near the “open ports” to use
the fabrics of the Western looms, and to poison itself with the opium, to
supply which, in defiance of the Chinese government, has been one of the
most cherished rights of European civilization. Lucrative as this commeice has been to the individuals concerned in it, and important so far
as regards the wealth and power of Europe, and now of America as
well, it has only touched the shell of China.
A few wealthy merchants, branches of flourishing firms in England or
America, have established their houses in China, with ramifications at
each of the lesser ports, including of late those of Japan ; in the conduct of
this traffic have amassed princely fortunes in a few years, and, when still
young perhaps, have returned to their native country to enjoy them and
to give place to the army of young men by whom the succession has been
maintained. These great houses have been princely in their hospitality
and display, no less than in their fortunes and the number of their retainers.
With the general convulsion of commerce which followed the close of the
war, and the subsequent prolonged depression, this state of things appears
to be passing away, or at least undergoing a decided change. Some of




1868]

TH E

C H IN A T R A D E .

459

the oldest and most honored names have disappeared entirely. Opera­
tions are no longer conducted on the same grand scale. Economy in
expenses is thought of. The necessity and practicability of monopoliz.
ing trade bv means of expensive branch establishments at all the ports is
beginning to be doubted. Since the establishment of steam communica.
tion between California and China, the Chinese merchants of Hong Kong
and San Francisco have been, collectively, shippers of by far the greater
portion of the large cargoes carried by the mail steamers of the Pacific
Company. These native merchants, some of them of considerable wealth,
were able, by reason of their greater frugality in all respects, to ship at a
profit which would not have enabled their European neighbors to live. The
steamers, as common carriers available to all alike, gave them an opportu­
nity, never before realized, for adventures large or small and of quick issue :
they were not slow to avail of it, and thus new branches of business have
sprung into existence.
In all this there is room for progress, and promise of it. Between
the oldest nation and the youngest: China, frugally supporting her popula­
tion of four hundred millions on an area of 1,300,000 square m iles; Amer­
ica, prodigally scattering thirty millions oyer 3,000,000 square m iles; the
former elaborately organized, reposing under a civilization which came out
of the furnace centuries ago ; the latter with no organization whatever, more
than a town meeting, boasting of a bran new civilization whose chief
characteristic is a fierce unrest; the one profoundly conservative, the other
eagerly radical: between the people who before the birth of Christ discov­
ered gunpowder, printing, and the compass, and that other people, who,
within a single life time, have wrested from each untold uses, and given
to each its highest practical application, surely there is room for the
interchange of more than a few boxes and bales of merchandise.

In California there are now sixty thousand Chinamen, of whom it is
said ten thousand are engaged on the Central Pacific .Railroad, the others
being occupied in mining, agriculture and various industries. It is diffi­
cult to foresee to what extent may be carried this transfer of population
from a land where it exists in inconvenient excess of numbers to one where
the demand for labor is apparently insatiable, and the means of providing
for its wants practically unlimited. Unjust laws and unequal application
of them, united to the violence, unrestrained by law, with which the
Chinese laborers, partly because of their frugal habits and patience under
abuse, were treated by the laborers of other foreign nations, had the effect,
for several years before the establishment of the steamship line, of check­
ing and, indeed, of reversing the current of this migration; but it has
again revived, and with vigor, since the last named event, and under the
influence of a healthier sentiment among the people of California and an




460

TH E

[June,

C H IN A T R A D E .

administration of the laws which recognizes in a Chinaman some rights that
an Irishman is bound to respect. The annual movement of population
for the past five years comparos as follows :
Arrived at
Departed from
an Francisco. San Francisco1863 .............................................................................................
6,467 2,969
1864 ..........................................................................................................
2,166
3,681
1865 .......................................................................................
3,0662,198
1866 .........................................................................
2,2842,993
1867 ..........................................................................................................
4,137
4,311
Total.............................................................................................

18,120

16,145

Bullion began to be an important article of export from California to
China about the year 1854, when the annual shipments reached a million
dollars. Since then this trade has gradually increased, the shipments since
1S63 having been as follows. For the sake of comparison we have placed
in parallel columns the shipments from California to Japan for two pear3,
previous to which they were wholly unimportant, and also the shipments
from Great Britain to all China and Japan, reduced to dollars:

1863.
1864
1865
1866
1867

.—From San Franc'sco.—,
To China.
To Japan.
$4,296,370
7,888,973
6,963 522
6,533,084
$105,890
9,039,530
6i8,049

Gt. Britain
tu all China
and Japan.
$9,979,545
4,456,645
2,800,130
1,515,980
1,328,830

The steady and rapid growth of the export from the Pacific coast is in
remarkable contrast to the decline in the flow of silver from England,
and at first sight there would appear to be some intimate connection be­
tween the two; but the causes are, on examination, seen to be, for the
most part, quite distinct. The heavy shipments from England to India
and Asia during the war in this country were part of the overgrown
speculation to which the mercantile community of England abandoned
itself at that tim e: the course of the bullion flow accurately marks the
progress and subsidence of the fever. The reaction has been the more
severe because the excitement of disease was accepted by the patient as
a sign of health. On the other hand, the trade between California and
Asia has been growing in bulk and value, and the sudden increase of about
twenty-five per cent in the treasure movement of 1867 results from
a combination of this cause with the establishment of the steamship line
on the 1st of January of that year, and an anomalous state of the India
exchange market, coincident with the plethora and low rate of money in
London, in consequence of which heavy operations were carried on, result­
ing in losses that will probably prevent their repetition in 1SG8.




186S]

40.

T H E C H IN A T R A D E .

The values of domestic merchandise exported from San Francisco
to China and Japan during the last three years compare thus:
To China. To Japan1885....................................................................................................................... *1.370,166
$107,814
1866..................................................................................................................... 1,534,700
1' 7,275
2867..................................................................................................................... 1,325,336
811,063

These exports consist mainly of breadstuffs, lumber and “ sundries,”
the production of the Pacific States.
The two principal articles of import from China and Japan are tea and
raw silk. The following table shows the exportation of each from either
country to Great Britain and America for five years :
FROM CHINA.

Year ending May El,
“
“
“
“
“
“
*•
“
“

.—Silt, pecills o f
,-------- Tea, pounds-------- ,
133M pounds—.
To England. ToAmerica. ToEngl'd. To Am.
1864...................................... 113,159,800
21,839,100
46.603
383
1865...................................... 118,010.700
14,725,200
32,313
248
111,165,200
24,896,500
62.890
394
1864....................
1867...................................... 118,061,160
26,193,900
50,052
715
FROM JAPAN.

Yearending March 30,1864....................................
“
“
“
1865
“
“
“
1S66
“
“
“
1867
“
“
“
1868

1,982,916
2,265,783
887.140
354,145
772,332

1,488,577
1,696,170
6,224,694
5,546,466
6,710,207

7,411
t5
6,525 None.
6,740
55
7,616
78
4,559
518

The importation of raw silk into this country has received a marked
impulse from steam communication, and is, in our judgment, destined to
grow to important dimensions, with momentous consequences to the
national wealth. This article is worth, on an average, about $600 in coin
per bale, or about $5 a pound. The silk of Japan is the finest known, and
is used in the production of the most highly esteemed fabrics of British and
French looms. The eggs of the Japanese silk worm are also imported
into France to an enormous amount, and at great expense, to supply the rav
ages of the disease which has for some years past affected the native
worms. With our greater proximity to Japan, and the great saving of
freight and of interest on the cost of a material of so much value, there
seems no reason why the infant manufacture of silk in this country should
not grow to a sturdy manhood. In all except the more elaborate and costly
fabrics, this advantage in the first price of the raw material should enable
the American manufacturer to compete successfully with foreign looms for
the supply of our extensive home market.
This question brings us to consider the probable influence of the Pacific
Railroad, now approaching completion, upon the population and wealth of
this country, and especially of the Pacific States, in relation to the com­
merce with Asia.




4G2

TO LE D O , W A B A S H A S D

W E S T E R N R A IL W A Y .

[June,

TOLEDO, WABASH AND WESTERN RAILWAY.
The results of operations on this railroad for the years 1866 and 1867
compare as exhibited in the following statement:
1S06.
1867.
Passenger earnings............................. $1,322,846 78 $1,213,525 43
2,5 64,225 40
Freight
“ ...................................
2,209,427 35
52,100 00
Mail
“ .................................
52,COO 00
Express
“ ...................................
98,845 17
14S.385 52
Miscellaneous........................................
34,766 92
31,217 23
$3,717,3S6 22

$3,809/53 58

Increase.
$154,798 05
50,040 35

Decrease.
$109,321 35
3,549 69

$91,697 36

$ ..............

$23,861 14
9,424 95

$ ..............

e x p e n d itu r e s, v i z . :
Iron & super? trnctnre............
Koiidw’y & -trnctmes............
Oars, engines, &c...................
Transportation, &c..........
Total expenses..
Earnings less expen's..........................

$241/51 79
624,06(1 25
556,605 78
1,389,462 68
$2,811,186 50
$906,199 72

$264,912
683,191
449.469
1,439,008

92
20
34
85

$24,304 18

$2,78b,882 32
$1,022,471 26

107,136 44

49,546 17

$116,271 54

$ ............

The length of road operated, including the 22 miles of the Chicago,
Burlington and Quincy Railroad used by this company, was 522 miles,
both years, which gives for 1866 §7,121 43, and for 1867 §7,297 61 per
mile, showing an increase for 1867 of $176 18 per mile. The expenses
for 1866 were §5,385 41, and for 1867 §5,338 85, showing a decrease
of $46 56 per mile. The net earnings for 1867 were thus increased over
those of 1866 by $222 74 per mile. The ratio of expenses to earnings was
75.62 per cent in 1866, and 73.15 per cent 1867.
The results here shown are highly encouraging. The cereal crops
throughout the country traversed by the road were far below the average.
The loss on freight traffic from this exceptional state of things is estimated
at no less than a million dollars; and yet, despite this adverse experience,
the aggregate earnings of the year 1867 foot up largely in excess of
those of any corresponding period in the history of the company.
The decrease in the company’s expenses has been wholly in the engine
and car department. The total decrease in 1867, as compared with
1866, was §107,136 04. There has been an increased expenditure in
all other departments, to the aggregate amount of $82,831 86, which
leaves the net reduction at §24,304 18. In the road department there
has been a vast amount of extraordinary work done. During the year
225,000 cross ties were renewed, and 32 miles of new and 39 miles of
re-rolled iron placed in the track, and 5 miles of new sidings built
Bridges, station-buildings, &c., have also been constructed to an unusual
extent. The rolling stock was also increased by three engines, and 25 7
cars of all kinds. The equipment at the close of 1867 consisted o f :




1868]

TOLEDO, W A B A SH AND W ESTER N

463

R A IL W A Y ,

locomotives, 105 ; passenger cars,49 ; baggage and mail cars, 24 ; freight
cars, box, 1,173, stock 405, flat 243, coal 154, caboose 45, and dump 30.
The receipts and expenses of the company on all accounts for the year
1867 are shown in the following statement:
■ EXPENDITURES.

RECEIPTS.

Construction, &c.......................... $443,636 53 Net earnings...................... ..........'$1,022,471 26
Interest & pref. divid’d .............. 1,039,161 83 Machinery and tools sold...........
1,840 00
Discount and exchange ..............
12,S00 82 Cons. mort. bonds sold............... 1,410.000 00
Tol. & Wabash RE. Co................
1,454 98 111. & So. Iowa RR........................
22,100 00
New York office ..........................
10,543 2S Bal. from previous year,..............
273,599 10
Sinking fund bonds paid..............
131,000 00
Total........................................ $2,238,491 44

Total........................................$2,730,010 26

—leaving a balance to credit of income amounting to $491,512 82.
The changes effected in the balance sheet during the last year are
shown in the following statement of balances at the close of 1866 and
1867 :
Capital stock, com’n ...
“
“ pref’a ...
Fundei debt ..............
Coupons due.................
Overdraft........................
Bills payable................
Equalization account..
Balance of Income,__
Total.

18'6.
$5,700,000 00

1867.
$5,700,000 00

1, 000,000 00

1 , 000.000 00

Increase.

Decrease-

14,345,00) 00
42,234 75
71,190 53
15,500 00
665,726 19
373,599 00

15,494,000 00
53,250 00

491,512 S2

1,149,000 00
11,015 25
............
............
..........
117,913 82

............
.............
71,790 53
80 00
665,726 00
............

$22,113,900 47

$22,754,182 82

$640,2S2 35

15,430 00

$........

$........

$

Against which are the following charges, viz.:
Road and equipment........................... $19,850,000 00
Trustees......... ....................................
1,195,000 00
M terial and fu e l.... .. ...................
303,014 07
S tocks..................................................
10,000 00
Sundry • ccounts .............................
55,?80 43
700,300 27
Equ dization acc’unt..........................
Cash.....................................................
...........
Total

$22,113,900 47

$20,999,000 00 $1,149,000 00
1,195.00) 00
268,757 88
J0,000 (Ml
95,678 83
40,098 45
34,574 08
151,m 98
151,171 98
$22,754,182 82

$ ............
34,256 19
665,726 19

$640,232 35

The funded debt as it stood, on the 31st December, 1867, was as fol­
lows :
,---- Interest.---- ■*
Classes of Bonds.
Rate.
Payable.
First mortgage bonds.
Tol. and Wabash RR, 75.4 m iles................................. 7
Feb. & Ang.
L. Eri , Wab. & St. Louis RR, 167 m .......................... 7
Feb. & Aug.
Gr. at Western R.R, (W .D.) 100 m ............................ 10
Apr & Oct.
Great Wester . K.R (E D) 81 m iles............................ 7
Feb. & Au".
Grent Wi-8'ern R. R. of 18.'*9, 181 m ............................ 7
Feb. & Aug.
Quincy and T ledo R. R., 34 m iles............................. 7
May & Nov.
Illinois & So. Iowa R.R., 41 m iles............................. 7
Feb. & Aug.
Second mortgage bonds
Toledo & W ba-h R R., 75.4 miles............................. 7
May & Nov.
W ibash and West rn RR, 167 m iles............................ 7
May & Nov.
Great Western u .R ., of 1859, 181 m............................ 7
May & Nov.
Equipm nt bond (Tol and Wab R.R).......................... 7
May & Nov.
Sinking f l b’ds ( r., W. & W R) 500 m .......................... 7
Apr. & Oct.
Consolidated mtg b’ds ( 1 ., W. & W)............................... 7 F. M. A. & N.

/— Principal.— *
Due. Amount.
1890
1890
1868
1S88
1888
1890
1682

$900,000
2,500.000
1,000,000
45,000
2,500,000
500,000
300,000

1878
1871
1893
1883
1871
1907

1,000,000
1,500,000
2,500,000
600,000
269,000
1,880,000

All of which principal and interest are payable in New York City,




464

TO LE D O , W A B A S H AND W E ST E R N R A IL W A Y .

\Ju

Regarding the funded debt, the president in his report says:
The funded debt is changed id two particulars; first, by the payment and cancella­
tion of $731,000 of our maturing sinking fund bonds ; and second, by the substitution
therefor, by exchange and otherwise, of consolidated mortgage bonds of the com| any,
and also by disposing of a portion of the latter bonds for the Meredosia Bridge and
other purposes properly chargeable to capital. The arrangement made some time
since for the extension of the first mortgage bonds, secured on the Ohio and Indiana
divisions of the road, is now practically accomplished. It is also anticipated that dur­
ing the yetr 1868, the balance of $269,000 of sinking fund bonds will be ex'inguished
by exchange f r consolidated mortgage bonds, which finally disposes of all the funded
debt maturing for some time to come.

On the whole, the report shows an improved and satisfactory condition
of the company’s affairs. The earnings are gradually increasing, and in
the face of extraordinary drawbacks, were larger in 186T than in any former
year. This excess, although insufficient to justify the payment of a divi­
dend, affords gratifying evidence of a marked uniformity and stability in
the growth and development of the traffic of the road, as well as encour­
aging assurances of its capability under favorable circumstances to make
liberal and satisfactory returns for the capital invested.
The construction of the iron railroad bridge over the Mississippi River
at Quincy (undertaken conjointly by this company, the Chicago, Burling­
ton and Quincy, and the Hannibal and St. Joseph companies), is now
being prosecuted with a degree of energy that warrants its builders in
fixing the month of September next as the time when the passage of trains
will be accomplished. By the completion of this great and important
work, the companies interested will secure safety and dispatch in the
transmission of freights destined for interchange at the Mississippi, and
obviate the delays and expenses incident to ferriage.
The following table is appended with the view of showing the fluctua­
tions in the market value of the stocks of the company since the consoli­
dation of July 1, 1865 :
Common stock- ------------\
1865-66.
1866-67.
36^©40
....© ■ ■
39 © 4 ' %
... @ ■
40 @40
43% 0146%
44 ©54%
43 ©43
39 @55
40 ©55^
40^ @43
41 @4%
SS% © 43
42 @42
39 @45%
42% @ 47
31 @40
88 ©42
45 @47%
21%@33
34 @39
46^@55%
32 ©39
46 ©52
35 @39%
34 @39
51 @52
38 @43
36 ©36
41%@47%

Months.
July.
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
March.
April.
fray.
June.

34 @55%

Tear.

1867-68.
4 6 % © 3%
48%@51
39 @49
39 @ 4 4 %
88 0 3 H %

38 @55%




31 @55

stock
1S66-67.
61 @61
67%@70
70 @73%
72%@7o
72 @7.%

t -------------Preferred

1865-66.

63@63
. © ..

66 @66
59 @65
61% @65
62 @67
6S%@70

1867-6S.
6Q%@72%
70%@71
69 @69
62%@68
62 @62^
61%@61%
64 ©67
68 @74%
70 @14
70%@72
.. . @. ..
.. . @ ....

CC@68

59 @75#

61%@74%

6C@64
64@65
68@€8
,.@ ..

. . © ....

1868]

T O L E D O , P E O R IA

A N D W A R S A W R A IL W A Y .

465

TOLEDO, PEORIA AND WARSAW RAILWAY.
This road will form an important link in the great midland line whicbj
commencing at New York, Philadelphia and Baltimore, passes through
Pittsburg, Pa., Steubenville and Columbus, 0., Logansport, Ind., and
Peoria, III., to the Mississippi at Warsaw and Burlington, at these points to
connect with the lines across the Iowa to the Missouri River and the sev­
eral Pacific Railroads already constructed or to be constructed. This
route being much shorter—at least 100 miles—than that by Chicago, must
naturally command a large share of trans continental commerce.
The Toledo, Peoria and Warsaw Railroad is wholly within the State of
Illinois. It commences on the Indiana line where it connects with the
Columbus, Chicago and Indiana Central Railroad, a recent consolidation
of which we gave an account in the M a g a z in e of last April. From this
point it extends in a straight line to Peoria, 111 miles, and so far has been
open severaljyears, and operated under the name of the Logansport, Peoria
and Burlington Railroad. From Peoria to Warsaw the distance is 119
miles, of which 66 miles were brought into operation January 1,1868, and
the remaining 53 miles are to be completed on or before July 4 of the
current year. A branch is also to be built from La Harpe on the main
line to Burlington on the Mississippi. The line between Peoria and Keckuk formerly belonged to the Mississippi and Wabash Railroad Companv}
but was consolidated with the Logansport, Peoria and Burlington Railroad
in 1865, under the name, as above, of the Toledo, Peoria and Warsaw.
The rolling stock owned by the company at the close of the year 1867)
consisted of 2 1 locomotives and 334 cars, of which 8 were passenger, 6
baggage, mail and express, 6 conductors’ and the remainder freight and
coal cars.
The earnings of the road from Peoria to the Indiana State line, 111
miles, amounted in 1867 to $574,462 28, and were derived from the fol­
lowing sources, viz.: passengers $182,746 29, freight $329,512 44, mails
$9,850 00, express $7,415 85, military $l,07l 71, rent of road $25,000,
rent of cars $3,221 53, and miscellaneous $15,644 93. The operating
expenses, including taxes, &c., amounted to $387,457 63. The net earn­
ings were $187,005 23.
The gross earnings per mile were in 1866 $5,060 02, and in 1S67
$5,175 34 —increase 2.28 per cent.
The nett earnings were in 1866 $1,549 24, and in 1867 $1,684 73—
increase 8.74 per cent.
The proportion of expenses to earnings was in 1866 69.38 per cent, and
in 1867 67.44 per cent—decrease 1.94 per cent.
The total revenue from operations, including $212,086 04 from previous




466

C O M M ER C IA L

C H R O N IC L E

AND

R E V IE W .

[June,

year, was $786,548 90, and the total expenditures, including interest on
bonds $111,965, amounted to $499,422 63 ; balance to credit of income
$287,126 27. The financial condition of the company at the close of
1867 is shown in the following general statement:
Capital—Common stock
1st preferred stuck
2d preferred f tot k .............................................
Funde
•*
“
'
’
^ '
2cl mortgage 7 per cent bonds (W. .Division)...............
Construction accounts unpaid..................................................
Open accounts (operating).......... .............................................
Bills payable ..................................................... .......................
Sinking fund (re ired by Illinois Central Railroad earniDgs)
Income account; surplus earnings.........................................

. $1,115,400 00
1,051,316 42
908,400 0 0 - $3,675,116 4ft
. $1,600,000 00
775.000 00
|O I G , i i W C
v.VJ
498.000 00— 2,873,000
O
122,411 85
50,569 30
50.023 18
72,021 58
287,126 27
$7,136,208 60

Total

Against this amount are charged, viz.:
Railway construction............
Equipment; engines and cars
Sundry balances (operating)..
Cash and cash item s............ ..
Materials and fuel on hand....

$0,456,555 91
600,700 00—7,057,255
9,278
17,223
52,510

Total.

91
71
07
91

$7,136,268 90

The road and equipment will cost about $9,200,000, or $40,000 per
mile. The means of the company to carry the work to completion appear
to be ample, the contractors taking a large part of their pay in stocks and
bonds.

COMMERCIAL CHRONICLE AND R E V IE W
Mr. Sherman’s Coin Contract Law—The Money Market—Government Secnrities—Consols
ami American Securities at London—The Stock Maiket—Railway and Miscellaneous
Securities—The Gold Movement—Foreign Exchange.

If Mr. Sherman is gratified by the passage of the coin contract law, he has
little reason to complain of the previous action of the Senate defeating his bill
for inflating the currency by the issue of twenty millions of new bank notes.
W hat is surprising is that this untimely and mischievous project could have
appeared to the mind of so experienced a political leader to stand the smallest
chance of adoption. I t would involve the giving up of the established policy on
one of the most important prerogatives of the Government, that of guarding the
currency, and exempting it from dilution and derangement by new issues. The
national cry for a sound currency will certainly be heeded so far by Congress
that no further depreciation is to be attempted, nor any new emissions of any
sort of paper money, especially of bank notes.
Waiving the general question of policy, however, the special objections to the
bill are, first, that it does not touch the most important defects of the banking
system ; and, secondly, that it does not offer a lit remedy for the evils with which
i t proposes to deal. In illustration of the last named point we may cite Mr.




1868 ]

C O M M ER C IA L

C H R O N IC L E A N D

R E V IE W .

467

Sherman’s statement that “ sundry States in the Union have not a national bank,
while Massachusetts, Rhode Island and Connecticut have from $>50 to $75 per
inhabitant.” I t is no honest remedy for this state of things to endow and sub­
sidize certain new government banks by a forced loan—a forced loan of the worst
sort, that of an issue of paper money. Who, moreover, would gain the profits
of this new doling out of the national bounty ? For whose emol iment does Mr.
Sherman believe that these twenty millions of notes would avail? Would the
people at large be benefited ? or would the whole profits be absorbed by a few
speculators who had clubbed their means together to form these new banks ?
Mr. Sherman suggests a reply to these queries. He says that “ the banks of
Ohio have loaned every dollar at their command to New York, while they refused
to the merchant, farmer and produce dealer ary accommodation.” And what
does this alleged fact prove but that the hot bed system of forcing banks to grow
where the spontaneous movements of business do not produce ihem is fruitful in
abuses. This is but one argument out of many by which Mr. Sherman’s own
admissions helpe 1 to defeat his project, and the people are well satisfied to see it
die.
I t is undoubtedly a defect of the National banking system that its currency is
unequally distributed. A recent report showed that of the 300 millions outstand­
ing, 104 millions were issued by New England, almost 70 millions by N ew Yorkj
40 millions by Pennsylvania, and 40 millions by Ohio, Iudiana and II inois, so
that over three-fourths of the National bank notes are issued from New England,
New York and Pennsylvania. How this concentration on the seaboard origi­
nated Mr. Hulburd tells us, in his report for 1866. H e describes it as follows :
“ The original act of March 25, 186 ’, provided for an apportionment of the national
currency to the several States and Territories a9 follows: one hundred and fifty millions
according to representative population, and one hundred and fifty millions accord­
ing to bat-king capital, resources, and business.
“ This requirement was repealed by the act of June 3, 1864, which left the distri
bution to the discrete n of the Comptroller of the Currency. By the amendment of
March 3 1Srfo, the clause requiring an apportionment to be made was re-enacted, but
at the same date an amendmen to section 7 of the internal revenue act provided
that all existing State hanks should have the right to become nation 1 banks, and
should have the preference over new organizations up to the 1st of July, 18t-5.
“ These two amendments were not in harmony ; for, if the apportionment was made
as required by the amen Iment to section 21, the State bank* then in existence could
not have been converted without exceeding in many instances the amount of circula­
tion apportioned to the different Slates. But, as it seemed to be the intention and
policy of the act to absorb all existing banking institutions rather than to create new
banking intere.-ts in addition thereto, the Comptroler of the Currency so construed
the amendments as to permit the conversion of State banks without limitation. The
effect of this action was to make a very unequal distribution of the cmrency, some of
the States rtceiving more th a n they were entitled to by the apportionment, and leav­
ing but a very limited amount to be awarded to the Southern aud some of the Western
States.”

In this official report we have the clear admission that the bank notes have not
been allo'ted as was intended. Who is to blame for the evil we do not care in
this place to enquire. It is to the proper remedy that we pr fer to confine cmr
search. A d this remedy obviously involves the calling in of the currency where
i t has been issued in excess of the equitable allotment. Several measures have




468

C O M M E R C IA L C H R O N IC L E A N D R E V IE W .

[June,

been introduced into Congress for this purpose The most important was that
of Mr. Hooper, which proposed to call in the circulation of banks on certain
established rules. F irst.n o bank was to be allowed to issue more than one
million of dollars of its own notes. Secondly, the smaller institutions were to be
regulated as follows : a bank whose capital did not exceed 8300,000 was to issue
notes to the amount of 90 per cent of its capital; a bank whose capital was from
$300,000 to $50 ',000 was allowed 80 per cent of circulation, and if the c pital
was $500,000 or upwards 70 per cent was the limit. Much objection was made
to this scheme, and a modification of it was proposed by the Comptroller of the
Currency allowing banks with two millions of capital to receive $1,125,00) of
notes. Three millions of capital was to entitle an association to $1,400,000 of
notes; four millions to $1,500,000; five millions to $1,600,000, while ten mill­
ions of capital was to secure $3,' 00,000 of notes.
The discussion of these plans evoked opposition from the banks whose privi­
leges it was proposed to cut off, so that the attempt was given up, and to this
moment no practicable solution of the difficulty has presented itself. The only
points which have been established so far, seems to be tha' the people will not
allow the currency of the country to be tampered with to accommodate those
who wish to start new bunks; and, secondly, that the existing banks, which
e joy currency privileges will not, if they can help it, suffer those privileges to
be taken from them or curtailed.
We have referred thus exclusively to the currency aspects of Mr. Sherman’s
bill, because it was by these chiefly that its defeat was rendered inevitable. We
trust that if it should be revived hereafter in a new form, that it will be care­
fully revised, and that its provisions will be extended so as to enforce the
redemption of all bank notes in New Tork, the establishment of some needed
safeguards against defalcations among bank officers, the keeping up of more
adequate legal tender reserves, and the increase of the efficiency of ihe Currency
Bureau, by making its examiners and other officials responsible where bad bank­
ing, which leads to failure or defalcation, has been concealed; and through
negligence, ^competence or collusion has failed to be reported.
'The usual stringency of money in March and April has been followed in May
by a very decided reaction towards the other extreme. The contraction of busi­
ness necessitated by the pressure of the foimer period has natural y been attended
by a limited demand for accommodation from merchants throughout the country,
and at mo t of the commercial centre there has prevailed an abundance of idle
funds, which have gravitated hither, and are now seeking employment at very
low rates of interest. A t the same time the loanable resources of the banks
have been increased by the payment of about four millions of interest in the
redemption of Compound Interest Notes dated May 15, 1865, both principal
and interest of which have been paid in 3 Per Cent Certificates, absorbing
the whole of the latter. The change in the condition of the banks resulting
from these causes is shown by the following comparison:
May 30.
May 2.
Loans and Discounts...............................................$208, 17,490
$257,028,672
Specie...........................
17,861,088
16.106.873
Circulation................................................................ 34,145,606
34,114,843
D ep osits................................................................... 2u4.746.964
191,* 6 135
Legal tenders........................................................... 65,633,964
57 836,599




ChangesInc $10,498,818
luc. 1,694,815
Inc.
30,763
Inc. 33.540,829
Inc. 7,797,365

1868]

C O M M E R C IA L

C H R O N IC L E A N D

469

R E V IE W .

Tbe fact of money being now :■@4 per cent on demand loans, while choice
commercial paper is negotiable at 5 per cent, is an indication of a stagnant
condition of general trade. In most branches of business the Spring trade
has proved unsatisfactory, the only really healthy demand having come from the
West, which has been exceptionally prosperous through its abundant crops;
Retail dealers complain of the contracted purchases of their customers, and that
their business is so overdone by the multiplici'y of traders that they cannot
make an average profit; and jobbers, under these circumstances, are naturally
cautious about the standing of the parties to whom they sell.
Ti e fo lowing are the rates of Loans and Discounts for the month of May :
B A TE S OF LOANS AND DISCOUNTS.

May 7.

Call lo a n s ...................................................
Loans on Bonds and M ortgage __ __
A 1, endorsed bills, 2 m os...............
Good endorsed bills, 3& 4 m o s ....
“
“
single nam es...
Lower grades .............................................

6 @
-@
64@
7 @
S @

7
7
7
8
9

May 14.
6 @—

-@
64@
7 @
8 @

5 (co
-@
« @
H@
7 @

7
7
8
9

—

-

May 21.

6
7
6J
74
8

-

May 28.
4 (3 6

7
54@ 6
6 @ 74
7 @ 8
-

The general unprofitableness of trading enterprises and the plethora of money
have induced an extension of speculative transactions in securities, and especially
so on Governments. A variety of considerations have conduced to diverting
operations in that direction, prominent among which may be mentioned the near
completion of the funding process, and the consequent filling up of the outstand­
ing authorizations for loans. The high prices of real estate have had aD infl­
uence in causing investors to shun that mode of employing their funds, while the
high prices of railroad stocks have tended to deter speculators from touching
them. Under the influence of this and other circumstances, which were more
fully explained in our last issue, there has been during the latter half of May
an unprecedented demand, which toward the close had carried up prices beyond
all precedent. Transactions in all kinds of bonds have consequently been large,
as may be seen in the following statement of the amount of Government bonds
and notes, State and city and company bonds, sold at the New York Stock
Exchange in the month of May, 1867 and 1868 :
BONDS SO LD AT T H E N. Y . STOCK EXC H A N G E BOAKD.

Classes.
U. S. bonds...
U. S.notes . . . .
St’e &city b’ds
Company b’ds
Total—M a y ...........
“ —since Jan. 1.

1867.
1868.
$16,226,800 $21,621,050
1,130,100
4,*-30,800
2,863,300
3,759.100
930,300
718,000

Inc.
$5,394,250
3,700,750
895,800

$21,150,500
69,784,680

$9,778,450
52,138,870

$30,928,950
121,923,550

Dec.
$ .......
212,300

The daily closing prices of the principal Government securities at the New
York Stock Exchange Board in the month of May, as represented by the latest
sale officially reported, are shown in the following statement:
P R IC E S OP GOVERNMENT SE C U R IT IE S A T N EW YORK.

Day of month.
Friday
1 ...
Saturday
2 ...
Sunday
3 ...
M onday.... 4 ..
Tuesday.... 5 ...
Wednesday 6 ...
Thursday
7 ...

,—6’s, 1881.—*,------ 6’s, (5-20 yr?.)Coupon------ „5’s,10-40 7-30,
Coup. Keg. 1862.
1864. 1865. new. 1867.yrs.C’pn.2d sr
..................... 113# ....... 108# 106# 107
109
109# 103# 107#
............................................. 108
....
106# 108# 109# 103# ..




113#
113#
113#
113#

.......
113
113#
.......

10T#
108
108#
108#

106#
106#
106#
106#

106#
106#
106#
107#

108# i* 9 # i03 ’ i0 7 #
109
109# ..........
*
1C9 109# 103
’.111*.
109 m u
107#

410

COMMERCIAL CHRONICLE AND' REVIEW.

Friday
8 .. . ....................... 113%
Saturday
0 .... ....................... 113%
Sunday
10. ..
Monday
11.. . ...................
H3%
Tuesday
12...
................... 113%
Wednesday 13___
Thursjay 1 4 ... .
Friday
15.......
Saturday
16.......
Sunday
18.. ..
Monday
Tuesday
19....... ..................... 114%
Wednesday 20. ... ..................... 114%
Thursday 21 . . . . ..................... 115
22....... ..................... 115%
Friday
115
Saturday
23....... ...................
Sunday
25.......
Monday
‘^6.......
Tuesday
Wednesday 27.......
Thursday 28....... ..................... 115%
29....... .................... 115%
Friday
S tturda
30....... .................................
Sunday
3L.......
First.......... .
Lowest.......
H ig h e st...
Range. .. .
Last.............

\J u n e ,

10S% 106% 107% 100% 109* 103% 107%
107% 107% 109* 109% 103% 107%
113% 109
107
107% 100%
107% 107% 100%
109*
107% 107% 109%
107%
107
107% 109%

103%
103*
104%
103%
103%
109% 103*

109%
114% 109%
114% 109%
114% 109%
110%
110%

107%
107%
108%
103%
108%
108%

107%
107%
108)6
103%
10S%
108#

109%
110%
11(1%
110%
110%
110%

i i r

115%
115%
115%
116%

iio%
110%
m%
i i :%
in%

108%
109
109*
K'9%
109%
100%

io ii
100%
109%
109%
109%
109%

113
.................. . 115% 115%
..................... 113% 113
2%
...................
2%
115%

108%
111%
107%
4%
111%

106*
109%
100%
3%
109%

107
109%
106*
3%
100%

113%
113%
1*3%
113%

109
108%
108*
109
109
109

109%
109%
lc9%
100%

107%
107%
107%
107%

110%
110%
110%
110%
110%

103%
104
104%
104%
104%
104%

108%
108%

iio%
ni%
m%
m%
m%
m%

iio%
iii%
iu%
m%
112
112

105%
105%
105%
105%
105%
105*

108*
108%
109
109%
109%

109
m%
108%
3
111*

109%
112
109%
2%
112

103%
105%
103
2%
105%

107%
100%
107%
2%
109%

107%
107%
107%

m

The closing prices of Five-Twenties at Frankfort in each week endiDg with
Thursday, were as follows :
May 7.
75%@75%

May 14.
75%

May 21.
76%

May 28.
77

Month.
75%@77

The closing prices of Consols for money and certain American securities
(viz. U. S. 6’s 5-20’s 1862, Illinois Central and Brie shares) at London, on
each day of the month of May, are shown in the following statement :
COURSE OP CONSOLS AND AMERICAN SECU RITIES A T LONDON.

Date.
Friday ..
Sat’day..
S unday..

Cons Am. securities.
for U. S. 111.0 Erie
mon. 5-20s sh’s. shs.

Date.

93% 74% 93% 46% Thursday.............. ....21
93% 70% 95* 46% F r id a y ....... ....... .. . 22
Saturday............... .. 23
93% 70% 95% 46% iSunday ................. ...24
94% 70% 95% 46% Monday.............. .
94
Tuesday................ ...26
7U% 95% 46
Wednesday.......... ...27
94% 70% 95% 46
94
70% 95* 46 Thursday............ ...28
94
F riday................. ...29
70% 95% 46
•atird i y ..............
94% 70% 95
45% Sunday___ ___ ...31
94% 70% 94%- 45%
Lowest..................
91* 70% 94% 46
»<% 70% 94% 45% Highest.................
94% 70% 95
45% Range....................
94% 70* 94% 43%

Sat’day...................... Jj
Sunday.......................10
Monday..................... H
Tuesdy ................... 12
Wedn’y ................. -13
Thursday..................If
Friday........................ 15
S at’day..................... 16
Sunday...................... 17
M onday....................Is 94% 7i% 94% 45% H l g f - g a ..............
T ub’day..................... 19 94%' 71% 94* 4i%| RngSiZr?..............
................
Wednesday................£0 94% 71% 95% 45%1Last

Cons Am. securities.
for U.8. III,C.l Erie
mon. 5-20s sh’s. sir’s.
94% 71% 9\% 45%
91% 71% 95% 45%
91 % 71% 95% 45%
95
95%
95%
96%
96%
96%

71%

71%
71%
72%
72%
72%

95%
95J,
96
96%
97
97

45%
45%
46

46%

47%
47%

93% 70% 91% 45%
96% 72% 97
47%

2%

2%

2%

2%

91% 70% 84% 41%
96% 73%' 97
60%
4% 3
12 % 8%
96%' 72% 97
47%

The course of the stock market has been somewhat disappointing to the larger
holders of railroad shares. A very large proportion of the lea'ing shares h d
been bought up by combinations, in anticipation that the current liberal earr­
ings of the roads would induce an active speculative demand during the usual
Spring and Summer ease in money. The event, however, has proved that there
are few casual operators in the street, and that the regular habitues of Wall
street are unusually cautious; so that although considerable effort has been made
to draw oat speculative transactions, yet the result has been disappointing, and




1868]

COMM ERCIAL

CH RON ICLE

AND

471

REVIEW .

the volume of business lias beeu less than during the same month of 1867, as
may be seeu in the following table showing the volume of shares sold at the
New York Stock Exchange Board and the Open Board of Brokers in May,
1867 and 1868, comparatively :
Classes.
Bank sh a res........................................
Railroad “ .......................................
Coal
“ ........................................
Mining 44 ........................................
Improv’ n t 44 ....................................
Telegraph 44 ........................................
Steamship44 ........................................
Expr’ss&c44 ........................................

1867.
4.051
1,468,0 tl
7,515
18,930
41,900
42,671
61,180
34,411

1868.
2,253
939,345
5,315
49,715
16,015
35,957
131,505
98,166

Total—April.............................. .......................... 1,678,699
44 —since January 1.......................................... 9,517,129

1,278,271
9,134,495

30,785
70,.r25
63,755
.......
.......

Increase.'Dec.
1,798
528,696
2,200
25,885
6,714

400,428
382,634

The following are the closing quotations at the regular board June 5, com­
pared with those of the five preceding weeks :
Cumberland C o a l..............................
Quicksilver ........................................
Canton Co............................................
Mariposa p r e f.....................................
New York Central............................. ...............
E r ie ...................................................... ............
Hudson R iv e r .....................................
Reading................................................. ..............
Michigan Southern........................... ................
Michigan Central............................... . .........
Cleveland and P ittsb u rg................... ..............
Cleveland and Toledo........................ ................
N orthw estern..................................... ................
44
preferred....................
Rock Islan d ........................................ ................
Fort W ayne........................................
Illinois Central................................... ................
Ohio and M ississippi......................... ................

May 1.

159%
11%

90*
91*
114
83
106
65
94%
147
31*

May 8. May 15. May 22. May 29. June5
36
81
34%
29%
32%
29%
26#
30%
51%
50%
E0
51*
51
9
11
133% 132%
128% 128% 129
68% 69
72%
69%
08%
136
138
143% 111*
131
94%
93
94
90%
90*
86% 87% 88
89%
117
119% 119%
88% 86%
84*
35%
84%
106% 105% 107% 109% 108%
66% 61% 66% 68% 6S%
77
76
77%
79%
81%
95
95%
95%
97% 102
107% 107% 109# 116% 111
146
147% 148% 150
31*
30%
31%
29%

The following table will show the opening, highest, lowest and closing pricis
of all the railway and miscellaneous securities quoted a t the New York Stock
Exchange during the months of April and May, 1868 :
Railroad Stocks—
Alton & Terre H aut.......
do
do
pref..
Boston, Hartford & Erie.
Chicago & Alton ...........
do
do p ref---Chicago, Burl. & Quincy,
do
& Milwaukee ...
do
& Northwest’n.
do
do nref.
do
& Rock Island..
Cleve., Col. & Cincinnati.
do Painesv. & Asbta.,
do & Pittsburg..........
do & T oledo..............
Del., Lack & Western...
do
do scrip...,
E r ie ..................................
do pref.......................... .
Hannibal & St Joseph .,
do
do p ref..
Hudson R iv er.................
Illinois < entral ..............
Ind. & Cincinnati...........
Mar. & Cincin., 1st pref..
do
2d pref...
Michigan Central..........
do J S. & N . Ind. ..
Mil. *Sr-1\ duCh’n, lstpr
Cr.
do
d pr.
Milwaukee & St. Paul..
do
do pref.




,-------- — April.----- ------ <
— May.------- ------ ,
Open. High. Low. Clos. Open. High. Low. C los'g.
45
40
45
40
45
48%
49% 43
68
68
68
73
73% 66
70
15
. 15
15% 15
14% 14% 15
15%
128% 120
128
128
. 120
128
127# 127%
125
129
129
129
. 125
129% 128
128%
149
150
150
150
. 150
150
149
150
75
75
75
75
64
63% 64
60
70
63
63%
75% 75# 80* 75
. 74% 70% 68
79%
85
93% 94% 9S% 93% 97%
. 92% 97
. 105
106% 104% 104# L104
109
104
107
102% 102% 108* 102
102* 99
108
92
83
xSO
S2% 89
. 92
83% S8
io o #
97% 105% 106* 310* 105* 109*
114
115% 114
114% 118% 125
118% 125
117
117
117
117
. 73% 75
65% 71% 71 * 72*
68% 70
75
74
74
69
77
74
76
73
80
. 76% 77% 73
83
78
88%
84
. 81% 85% 81
94% 87
83% 87
140
322% 137
136# 144
136
142
147# 137
. 137
147# 146* 148% 145% 148 y .
54
54
54
. 54
25
25
25
29% 27
27
. 25
28%
10
10
10
10
115% i i 3
115* 116
121
113
118
120
90
.. S9% 91* 85
90% 91% 82* 88%
99
99
100
. 99
104
100
104
93
93
93* 91# 97
,. 93
91% 97
56
64
64%
67*
64X
62
67
68% 75% 76
77
. 74
79% 74% 77%

472

COMM ERCIAL

Morris & E ssex...............
New J er se y ....................
do
Central..........
New York Central..........
do
& N. Havtn..
Norwich & Worcester...
Ohio & M ississippi........
do
do
pref .
Panama .......... — —
Pittsb., Ft. W. & Chica..
Reading......... ........... ,
Rensseiaer & Saratoga..
Stonington.....................
Toledo, Wab. & Western,
do
do
d op iet..
Miscellaneous—
American Coal ...............
Ashburton (so ...............
Central
do
..........
Cumberland Coal.........
Del. & Hud. Canal Coal..
Pacific M ail................... .
Atlantic do ...................
Union Navigation..........
Boston Water . ower ..
Canton............................
Cary Improvement.........
Mariposa.......................
do
pref.................
Quicksilver.....................
Citizen’s Gas................. .
w est. Union Telegraph.
Bankers & Brokers Ass.,
Uniou Trust...................
Express—
American........................
Adams
..................... ,
United States...................
Merchant’s U n ion ..........
Wells, Fargo & Co..........

C H R O N IC LE AND

117# 118% i l l # 115%
122% 130
110% 128%
139
142
137
142
94
94
94
31
32% 28% 31%
78
76
76
78
316
295# 307
316
99
103%
10 % It 5
. 89% 91% 86% 90
, 85
86
84
86
. 92
92
92
92
50% 52
46
51
72
72
70# 71

65
65
133
133
116
120
129# 134
no159

.
.
.
.

51%
69

48
48
48
43
3
40
40
40
40
32% 33
29
12% 33
160
157
155% 1 8
If 8
103% 104
86
92# 01%
35
35
87% 87% 28
20
25% 30
'•0% 30
21# 27%
19% 21% 19
46% 40% 45
49% 51
8%
6
5
6
6
6%
9
9
12%
l'l
n%
28% X3
23
27% 27%
144
35% 38% 31% 36% 717%
113
120

, 69%
. T o y.
71
. 35
. 35%
.

60%
76%
71%
35
35%

49
52
45%
25
26

61%
62
61
31%
26%

65
133
110%
133#
l.»l

65
133
116
157%
150

31% 31% 29% 30%
78
80
78
80
315
330# 315
330#
116
104
104
116
95
90
06% 90
86% 80% 86% 80%

43

.
.
,
.
.
.
.
.

[June,

R EV IEW .

60
61
60%
31%
26%

52
69

49
69

51%
69

43
3%

43
2

43
3

35%
165
97
35
26
21%
52
8%
6
n%
32%
144
88%
113
120

33
156#
00%
31%
20
20%
49
8%
5
0%
27%
144
36%
100%
120

35%
164
95
34
21%
20%
51%
8%
5
0%
29
144
38%
112#
120

61
63
61%
31%
27

53
56%
55%
28
22

56
28%
25%

53
so y ,

The gold movement presents some unusual features. The exports for the month
reached the very high figure of $16,925,000, while the payments for custon s duties
were $10,009,000, making an aggregate of $26,934,000 withdrawn from the
market, or $10,046,000 in excess of the withdrawals for the corresponding month
of 1867. The withdrawals exceeded the supply from all reported sources by
$9,288,000, and yet there was $1,595,000 more specie in the banks at the close
of the month than at the beginning, which is to be accounted for by the fact that
$3,572,000 of gold was derived from unreported sources, chiefly from sales by the
Sub-Treasury. The payments of coin interest at the Sub-Treasury are $999,000
above those of May, 1867, and the receipts from California $1,342,000 larger.
The exports are more than double those for the same period of last year.
The following formula furnishes the details of the general movement of coin
and bullion at this port for the month of May, 1867 and 1868, comparatively :
GENERAL MOVEMENT OF COIN AND BULLION AT NEW TOBK.

In banks, near fir st.......................
Receipts from California.. ...........
Imports of coin and bullion.........
Coin interest paid...........................
Total reported supply............
Exports of coin and bullion.......
Customs d u ties............................

1.867.
Increase. Decrease
1803.
$7,401,304 $16,166,873 $',762,509 $ ............
1,181,128
2 523,385 1,312.257
312,000
168,022
480 022
.. . 16,054,000 17,053,376
999,376

....
....

....

$36,223,656 $11,27-2,224
$8,307,000 $16,925,980 $8,018,' SO
10,009,176 1,427,176

* ............
$

..........

Total withdrawn...................

$26,935,156 $10,040,156 $ ............

Excess of reported supply............
Specie in banks at end.......... ......

$9,288,500 $1,226,068 $ ...........
17,861,088 3,7*7,421

Derived from unreported sources




. . . . $6,021,835

$8,572,588 $2,551,353 $ ............

1808]

COMMERCIAL

CH RO N ICLE

AND

473

R EV IEW .

The price of gold has been remarkably steady, considering the importance
of the political events (especially impeachment) c Iculated to affect the premium,
the quotation having ranged between 139^ and 14('£ against 13f@138|- in May
ls67, and I 2iVJ@l4! J in I860, and 128J@146-J in 1865.
The following statement exhibits the fluctuations of the New York gold
market in the month of May, 1868 :

Friday.......... .
Saiurday.......
Sunday.'.........
Monday.........
Tuesday.........
Wednesday ...
Thursday......
F rid a y ..........
Saturday.......
Sunday .......
Monday..........
Tuesday.........
Wednesday...
Thursday.. ..
F rid a y ..........
Saturday.........
Sunday ..........
Monday.........
Tuesday. __
Wednesday...
Th irsday.......

fci

to

a
an

Date.

O
Q

1|189* 139% 139* 139%
2 139# 131% 139* 139*
8 ........
41139# 139% 139% 139%
6 189* 139% 139% 139%
6 139# 139% 139* 139%
71139* 139% 139% 139%
81139* 139% 139% Hi‘%
9 139% 13.1% 140% 140%
1 0 .......
n|i4o% 139* 140* 139%;
12! 139Sj 189%
131139* 139* 139* 139%
14 139* 139* 140% 139%
151139* 139* 139% 139%
161139* 139% 139% 139*
.......
17|__
18(139% 139* 139% 139%
191139% 13!)% 139% 139%
201139% 139* 139% 139%
211139% 1?9# 139% 139*

©

a,
O

High’st

ca
is
tfl
a

Lowest.

Lowest.

Date.

Openi’g

1________

COURSE OP GOLD AT NEW YORK.

tu
.5
■
xi
o
o

221139% 139% 140 139#
Friday..................
Saturday .............. ...23 139% 139* 139% 139%
...24
Monday.............. ...25 139% 139% 140 140
Tuesday.............. .. 26 140% 139* 140% 140%
Wednesday.......... ...27 140% 139* H0% 139*
Thursday.............. . .28 139* 139* 139% 139*
Friday............... ..29 1391$ 139% 139* 139*
Saturday..............
139% 139* 139* 139%
Sunday— .........
31
—
—
May . 1868..........
“
1867..........
13-.% 135 138* 136*
“
1866..........
12% 125% 141^0140}/
“
1865..........
115% 128% Hois' 137
“
1864..........
177 168 190 190
“
1863 .........
151 Id3%
“
18G2..........
102% 102% 104% 103%
—

S’ce Jan 1, 1868..

133* 133% 144

13>%

Foreign exchange has been firm throughout the month, at rates admitting of
the export of the piecious metal . There has been comparatively little cotton
going forward, while the maturing obligations were heavy, and a laige amount
had to be remittid against coupon- due May 1st.
I’he following exhibits the quotations at New York for bankers’ 60 days bil s
on the principal European markets daily in the menti of M .y. 1868 :
COURSE OF FOREIGN EXCHANGE

Days.
1 . ..............................
•4 ..............................

London.
Paris.
cents foi
cetimea
54 pence.
fordollar.
110 @110% 518540512*
HO @ 110* 5 1 8 * 0 5 1 2 *

(60 DATS)

AT NEW YORK.

Amsterdam. Bremen. Hamburg.
Berlin,
cents for cents for cents for
cents for
florin.
rix daler. M. banco.
thaler
4 1 * 0 4 1 * 7»X@80
88*088* 71*072
4 1 * 0 4 1 * 7»*© *>
86*086* 71*072

3 ............ ...................................................................................................

4 ........................... 110 @ '10* 5)'I*@ 512*
4 1 * @ ll* 7 9 * 0 8 0
36%@36% 7i%©72
5 ........................... 110 @ 110* 513 ti0 5 1 2 *
41*041* 79*080
86*086* 71*072
0 ................................ 110 @ 110* 5 1 3 * 0 5 1 2 *
41*041* 79*080
S 6*@ 36* 7 1 * 0 7 2
7 ................................ 1 1 0 * 0 1 1 0 * 5 1 2 * © . . . .
41 %@41% 7 9 * 0 8 0
3«*@ 36* 7l%@72
8. ..-......................... 1 1 0 * 0 1 1 0 * 5 1 2 * © . . . .
41*041* 79*080
86*086* 71*072
9 ............... ........... 1 1 0 * 0 1 1 0 * 5 1 2 * © . . . .
41*041* 79*080
8 0 * 0 8 6 * 71*072
10..........................................................
.....................................................................................................
11 ........................... 110 @ 110* 5 1 3 * 0 5 1 1 * 4 1 * @ t l* 7 9 * 0 8 0
8 *@ 36* 71*072
12 ............................ n o © 1 1 0 * 5 1 8 * 0 5 1 1 * 4 1 * 0 4 1 * 7 9 * 0 8 0
8 6 ,0 8 6 * 71*072
18 ........................... 110 @ 110* 5 1 2 * 0 . . . . 4 1 * 0 4 1 K 7 9 * 0 8 0
8 6 * 0 8 0 * 71*072
.. 4 1 * @4 I * 7 9 * 0 8 0
8 6 * 0 8 6 * 71*@72
14 ........................... n o @ 110* 5 1 2 * 0
1 5 .... ..................... n o @110.*' 5 1 7 * 0 . . . . 41 * @ 4 1 * 7 9 * 0 8 0
8 6 * 0 8 6 * 71*072
1 6 ................... . . n o @ 110* 5 1 2 * ® . . . . 41* @ 4 1 * 7 9 * 0 8 0
3 6 * 0 3 8 * 71*@ 72
i s; : ; ; ; ; . -" . ' . i i « * © i o *
513* 0 5 12 * 4 i y @ « * 79* 0 4 0 " 8 6 * © a i* 7 i * © «
19 ........................... 109*011. * 5 1 8 * 0 5 1 2 * 4 1 * 0 4 1 * 7 9 * 0 8 0
86X 081* 71*072
S6*@ -.6* 7 1 * 0 7 2
20 ........................... 1 0 9 * 0 1 1 0 * 5 1 4 * 0 5 1 2 * 4 1 * 0 4 1 * 7 9 * 0 8 0
21 ........................... 1 0 9 * 0 1 1 0 * 5 1 3 * 0 5 1 2 * 41 * @ 4 1 * 7 9 * 0 8 0
38*036% 71*@ 72
2 2 . .. ........................... 109*0110% 5 1 8 * 0 5 1 2 * 41*041% 7 9 * 0 4 0
86*086* 71*072
23 ........................... 109*0110% 5 1 3 * 0 5 1 2 * 41%©41% 7 9 * 0 8 0
3B%@36% 7 1 * 0 7 2 .
24 .......................................................................................................................................................................
25 .............................. 1 1 0 * 0 1 1 0 * 5 1 3 * 0 5 1 2 * 41*011% 7 9 * 0 8 9
36*036% 71%@72
26 ........................... 1 1 0 * 0 1 1 0 * 5 1 3 * 0 5 1 2 * 4 1 * 0 4 1 * 7 9 * 0 4 1
8 0*036* 71*072
27 ........................... 1 1 0 * © U u * 5 1 8 * 0 5 1 -.* 4 1 * 0 4 1 * 7 9 * 0 8 0
86 * 0 3 6 * 71*072
28 ........................... 110% 1.11"* 5 1 3 * 0 6 1 2 * 4 1 * 0 4 1 * 79%@S0
36*036% 7 1 * 0 7 2
29 ........................... 110%@110* 5 1 3 * 0 5 1 2 * 41*@41% 7 9 * 0 8 0
30%@38* 71%@72
89 .............................. 1 1 0 * 0 1 1 0 * 5 1 3 * 0 5 1 2 * 4 1 * 0 4 1 * 7 9 * 0 8 0
86*086* 71*07*
81......................................................................................................................................................... ...........
M av. 1868..................

109*0110*

1807.............................. 109*0110




513*0511*

41*041%

79*080

3f>%©3«%

7 1 *@ 72

520 @510 40* 041* 78*@80 30 @ 36* 71* 072*

474

W IN E

G R O W IN G .

[June,

T H E H U D S O N B A Y Q U E S T IO N .

As there seems tc be a good deal of misapprehension on the present position
of the Hudson’s Bay question, it may be as well to state how the matter actually
stands. I t is provided by the 146th section of the Union A ct that " i t shall be
lawful for the Queen, by and with the advice of her Majesty’s most honorable
Privy Council, on address from the Houses of Parliament of Canada, to admit
Rupert’s Land and the Northwestern Territory, or either of them, into the
Union, on such terms and conditions in each case as are in the addresses expressed,
and as the Queen thinks fit to approve.” There is a strong desire in
Canada to get this provision carried into effect: and an address to the
Crown has been passed by both the Canadian Houses.
In that
address, however, nothing is said is to “ terms or conditions,” and these
remain for future negotiation. {Mr. Rose (the Finance Minister of Can­
ada) and Mr. Macdongall are expected to arrive here in June on business cohnected with the Intercolonial Railway, and it is understood that they will also
endeavor to come to some understanding with the Colonial Office and the Hud­
son’s Bay Company as to the terms oe wh ch the territory now in the possession
of the latter shall be incorporated with the Dominion. The settlement of this
question is of great importance both in a colonial and an imperial point of view.
The address to the Crown to transfer the sovereignty of Rupert’s Land to Can­
ada does not, of course, compromise the pecuniary rights of the company, which
remain to be settled either by agreement or arbitration .— E u r o p e a n I'im e s.

W IN E

G R O W IN G .

M. Edmond About, in a recent article on the wines'of Prance, gives ir the
some interesting figures and facts. From his authorities it is shown
that the vine yields more than one-fourth of the revt nue of France derived fiom
agriculture. In 1606 wine to the amount of 308 millions was exported Irom
France—the value of the whole peoductions being estimated at 500 millions of
francs. The average cost of the wine crop is one franc the litre (a little more
than a quart), whilst the finest wines cost Irom 12 to 15 Iranc- the litr^. I he
Haute Bourgogne and Mt'doc are the two brands which, M. Ahout affirms, dcly
criticism as to the purity of their kind, owing to the corners of F mice whete
these vineyards a e. The king of red wiues he declares to be the Gos Vougeot, but
that vineyard yields an average of 450 hhds. only. The king of white wines is the
Chateau Yquem, and that estate is smaller than the Clos Vougeot. The growers
of these wines, M. About states, testrained by a laudable pride, as well as honesty
never falsify or dilute them. None know better than the armers, however, i ow
much the.public like to be deceived—that public which buys Clos You eot at
three, aLu Chateau Yquem five at francs the bottle The larmers sell their pure
wine dear, and leave to the unscrupulous intermediaries the shame and profit of
the fraud. M. About deems the great obstacle to a wider planting of the wine
in the Gironde and other countries exceedingly favorable to vineyards, to be he
want of well-trained labor. Vine-growing and wine-making are delicate and
constant troubles, and farmers have great difficulty in supplying themselves wita
M o n ite u r




1868]

R E V E N U E AND E X P E N D I T U R E S

OF

THE

U N I T E D STA TES.

475

bands, and in =ome instances the vine laborer is not to be had at any price. In old
tii es counterfeits were, in point of hygene, harmless, for champagnes made from
gooseberries and rhubarb did not destroy the coatings of the stomach. But the v in
o r d in a ir e that any country chemist can get you up nowadays is excellent an 1 a poi­
son, and has tl e advantage of unvarying quality, and sparkling champagne is con­
cocted from petroleum and coal, and sold as Clicquot or Montebello. The Roede er
champagne is as often counterfeited as any other, and quantities of “green seal” are
swallowed in England and America which it costs just one ahilling per bottle to
manufacture. M. About thinks the Italian wines the least adulterated as a class,
owing to the small exportation of them, and sees little hope of any change for
the better iD France, as long as the young men of the country are absorbed to
so great an extent by the army. With the necessary number of hands tne pro­
duction of Burgundy wine might be tripled, and the coarser brands so improved
and cheapened as to leave little margin for the counterfeiter’s profit. Think of
Chambertin and Sauterne cheaper by half than beer and cider 1 if Napoleon III.
would only disarm, reduce his army and encourage the works of peace.—Paris
correspondence (May 14) of the B o s to n P o s t.

REVENUE AND EXPENDITURES OF TOE UNITED STATES.
We extract the following tables from the speech of Mr. Schencb, Chairman of the
Committee of Ways an 1 Means, made on Monday last. He stated the receipts of the
national revenue for the fiscal year ending June 30, 186*7, to have been as follows :
RECEIPTS.

Currency..........................................................................
Coiu....................... .......................................................

$314,109,136 61
176,410,810 88

Total—coin and currency....................................

$490,526,947 49

EXPENDITURES.

The expenditures for the fiscal year ending June 80, 1867, were as follows :
FOR CIVIL SERVICE.

Legislative, judiciary, executive and diplomatic................................................
Pensions......................................................................................................................
Indians......................................................
Navy............................................................................................................................
War—exclusive of bounties.....................................................................................

$51,110,027
20,936,551
4,642,531
31,034,011
83,841,555

27
71
77
04
80

Total ordinary expenditures..........................................................................
Interest..........................................................................................
Bounties......................................................................................................................

$191,564,677 59
143,781.591 91
11,382,850 83

Total expenditures .......................................................................................

$346,729,129 33

The balance of receipts over expenditures for the fiscal year ending June 30,
1867, w a s .......................................................................... ......................................

$143,797,818 16

By the acts of July 13, 1866, and of March 2, 1867, internal revenue taxes were
repealed or abated to an extent sufficient to occasion an annual loss of revenue from
internal sources, taking the returns of the preceding year as a precedent, of at least
$90,000,00', of which amount some sixty or seventy millions were made applicable for
the reductiun oftaxes during the fiscal years ending June 30, 1866, and 1867 ; the
balance taking effect during the succeeding or present fiscal year.




470
NATIONAL

REVENUE
r e c e ip t s

AND E X P E N D I T U R E S O F T H E U N I T E D S T A TE S .

a n d e x p e n d it u r e s

30, l 8t>8,

fo r t h e

c u r r e n t f is c a l

[Ju n e,

ENDING JUNtt

year

ACTUAL AND ESTIMATED.

For the three quarters, from July 1, 1867, to March 1, 1868, actual:
RECEIPTS.

Customs.................................... $121,208,874
I.an Me.........................................
S66.337
Interna’ revenue...................... 140,686,426
Direc tax ...............................
1.413,1160
M scellaneous.......................... 3),01'.>,300

37
31
^4
40
71

Total.................................... $299,194,459 29

EXPENDITURE*.

Ci'il, 1 gi-lative, & foreign in­
te rc o u rs e ........................................

Interior, pensions, Ac..............
War..............................................
Navy.............................................
Interest on public debt...............
Total......................

$

38,554, 1'5 32

21,733,337 19
88,858,496 82
19,113.673 53
109,418,383 37

$230,678,06G 83

Fourth quarter, from March 1, 1868, to June 30, 1858, estimated :
RECEIPTS.

Custom s.................................
Lands.................................
Internal revenue...................
I drect tax...................... ........
Miecel aneous........................
Total

$44,0 0,000 00
300.000 09
50.000,000 00
300.000 00
12,0LU,(X)O 00
$106,600,000 00

I*XPENDITURES.

Civil, legislative, and foreign u tercourse ................................ $i 3,000,0ft0 00
Interior, pensions, &c...............
4,000,000 0(;
War ........................................... 35,000,0' 0 00
Navy....................
6,500,000 00
Interest on pnblic debt.
40,000.000 00
Total...................................... $98,500,000 00

Total revenue and expenditures for the fiscal year, ending June 30, 1868, actual
and estimated :
RECEIPTS.

Customs .. ................................$1G5 208,374 37
Lands.........................................
1,166,337 31
Internal revenue....................... 100,686,426 41
Direct tax...................................
1,713,960 46
Miscellaneous...........................
47,019,360 71
Total....... ............................ $405,194,459 29

EXPENDITURES.

Civil, legislative, &nd foreign in­
tercourse........................ r........$51,554,175 32
Interior, pensions, &c............... 28,773,337 20
War.............................................. 123 858,496 82
Navy............................................. 25,613,673 53
le t rest on public debt.............. 149,418,383 87
Total.................................... $379,173,063 83

RECAPITULATION.

Receipts and expenditures for the fiscal year ending June 30, 186c:
Total receipts................................................................................................................ $405,794,459 20
Total expenditures...................................................................................................... 3:9,178,066 83
Estimated balance of receipts over expenditures t o r the fiscal year ending June
30,1868 ................................................................................. . ...................................

$26,610,392 46

As to the national receipts and expenditures for the fiscal year, ending June :-0
1S69, Mr. Schenck stated that the appropriation bills for .he next year, which have
passed or are now pending, are as follows:
Deficiency bill, Senate, No. 32 passed...................................................................
Deficiency bill, Senate, contingent, No. 4G1, passed...........................................
Deficiency bill, Reconstrcc'ion, No. 1,045 passed................................................
Relief bill. District ot Columbia, March 10, passed ............................................
Military Academy, passed...............................................
Consular and Diplomatic, passed.......................................................................
Post Office, passed....................................................................................................
Pension-, pending.....................................................................................................
Army, pending .............................................................................................
Navy, pending...........................................................................................................
Legislative. Executive and Judiciary, pending....................................................
sund y civil expenditures, pending.......................................................................
Indian—pending.........................................................................................................
River and barb r—pending......................................................................................
Deficiency bill—pending...........................................................................................

$12,S39,196 21
82,000 00
87,7l'» 50
15,000 00
284,604 50
1,206,434 (;0
1,545,000 00
3 ,350,000 00
32/81,013 <O
17/00,000 00
16,8n()/>?2 (4)
6,020,376 32
v/O m.OOO 00
6,000,000 0o
1,912,960 00

Total..................................................................................... ..............................
Miscellaneous, including appropriations for New York City Post Office, pri­
vate bills and judgments ot Court claims—e-timated......................................
Permanent appropriations for collecting the revenue, &c..................................

$130,304,366 5 5

Total................................................ .....................................................................
Interest on the public debt................. ....................................................................

$150,000,0(0 00
129,618,078 53

Total.




$10,000,000 OO
9,96a,600 00

$279,951,445 0

18G8]

B U R L I N G T O N AND M I S S O U R I R A I L R O A D .
EXTRA.OBDINARY EXPENDITURES.

477

Bounties—es im ated..............................................................
............................
Alaska........................................................................................................................

$40,500/00 00
7,200,0 0 00

Total .................................................................................... ..........................
To this aggregate ihere should also be add 'd outstanding appropriations
heretofore m tde that will not be extended till n -xt year, viz.............. ..........

$327,651,445 03

Making a tot 1 probab’e expenditure during the next fiscal year, for which
revenue must be provided o f ..............................................................................

24,660,181 00
$352,320,629 03

A recapitulation of the estimates wf recei ts given by Mr. Schenck shows the fol­
lowing as the total anticipated revenue for the next fiscal year:
C ustom s......................................... |$165,000,00ft Miscel aneous.................................
30,000,000
Internal revenue............................. 210,560,000
------------Public lands....................................
1,000,000
T otal......................................... $406,560,000

Supposing no increase of receipts from distilled spirits and tobaccoove’* the receipts
for the fiscal year ending June 30, 1867, the above estimate would be reduced to
$36",560,"00.
Estimate of expenditures for next fiscal year, before submitted, $352,320,629.
Balance to account at surplus revenue, $28,239,371.
B U R L IN G T O N AND M I S S O U R I R A IL R O A D ,

An erroneous statement has been circulate] in the daily papers, to the effect that
this company had negotiated a loan of $3 ,000,000, alltaken by its own stockhol lers«
It is hardly necessary to deny the accuracy of such an extravagant statement, and
we do so merely to call atb ntion to the real facia appearing in circulars issued to the
stockholders of the Chicago, Burlington and Quincy Railroad C impany, by its Board
of Directors, which have been sent to us by Mr. Den son, Chairman of that Board. The
assent of a m jority of stockholders h ving been given to the proposal that $3,000,000 bonds of the Burlington and Missouri River Road should be taken by the Chicago,
Burlington and Quincy Company, the following, from a circular to the stockholders
of the latter company announcing the fact, will explain the whole transaction :
A very large maj rity of our stockholders having responded to our circular of Februaiy 20th, an I expressed their approval of the proposed aid to the Burlington and
Mi-souri River Railroad Company, to secure the completion of its road to the Mis­
souri River, we have the opportunity to offer you the $1,200,000 convertible Don Is
wh eh we are to take up, and the $1,800,000 Land Mortgage Bonds whi h that compmy are entitled to issue on the 100 miles to be built as the fin il section. The two
classe1, amounting to $3,000,000 in the aggregate, are to be sold together in the propnrti ri of three Land Mortgage Bonds t> two convertible. The Land Bonds are
seven per ernts, have twenty f ur and a half years to run, (to October 1, 1893,) are
the first and only hen • n the road, rolling stock, franchise and land grant of about
400.000 aures—the lands believed to be sufficient t> provide a sinking fund for all the
bonds secured on the whole-property. The convert ble are to be eight per cent ten
vear bonds, to be redeemed in the preferred stock of that company at o>- any time
before maturity, and are to be taken up, on sealed proposals of holders, by the
Chicago, Burlington and Quincy Railroad Company, from the profits.of its business
with the Burlington and Missouri River Rai road Company, commencing February,
187", with the excess of profit , estimate i as heretofore, above theamount pie Iged to
th^ former issues, and c mtinuing in operation ’ill the profits, beyond what had been
previously pledged shall am uot to enough to take up the present issue, when the
bond* will cease to draw i iterest, after public notice, and must be surrendered at par
an I accrued interest, or, after twelve months from the date of the a ‘vertisement,
forfeit the claim on our company to take them up ; provided, however, that the sur­
render shall not he required with;n a period of five vears from the date of the bond.
These bonds are offered to our stockholders of record, March 16th (dividend day,) at
eighty five per cent, and are to be pai 1 for in ten instalments of equal amount, with
the privilege of anticipating payments at the rate of seven per cent per annum. * *
By order of the Board,
J. N. D enison , Chairman.




478

RAILROADS

OF THE DOM INION

OF

[June,

CANADA.

M I N N E S O T A R A IL R O A D S .

The following account of the railroads of Minnesota, from the Cincinnati R a il­
w a y Record, is of much interest:
We come n w to the railroad system, which has progressed in Minnesota, for a
new S'ate very rapidly. The principal railroads are aided very largely by the
Government. In 1857, Congress made a land grant of four and a half millions to
Minnesota for railroad purposes. In 1864, an additional grant was made. These acts
gave ten sections 6,400 acres of land for each mile of road; to be built under the
law, for the great projected lines. The principal lines are :
1. F ir st D ivision o f the S t. P a u l and P acific R ailroad. —This goes frrm St Paul
via Sf. Anthony and Minneapolis, to a point on the Western boundary of the State,
at or near Big Ston* Lahe. The main line is 200 miles in length, of which twentyfive miles a e in operation, fifteen graded, and the company expect to complete, in
all, seventy miles this year. Connected with this line is a bridge over the Mississippi,
above the Falls of St Anthony. This road has a branch from St. Anthcny to Watab,
of which sixty five miles, to Sauk Rapids is in operation.
2 . A L in e from W atab ( connecting with the form er) v ia Crow W in y to P em bin a ,
on the great R e d R ive r o f the N o rth , 320 m iles in length'—This line is lo.ated, but no

part of it is constructed.
3. T h e M innesota Valley R ailroad. —This goes up the Minnesota Valley from
St. Paul to the Iowa State line, and thence to Sioux City, which is the northern ter­
minus (by A t of Congress) of a branch of the Union Pacific Railroad The whole
distance to Sioux City is 240 miles, of which sixty-two miles are in operation, and
ninety will be at ihe end of the year.
4. The Milwaukee an d St. P a u l R ailroad. —This line :s nearly North and South, is
110 miles long, and all of it in operation.
5. St. P a u l and Superior R ailroad. —This line goes from St. Paul to the head of
Lake Superior, which is 150 miles. It has thirty miles graded, and a large land
grant. It will be pushed to completion.
6. The H astings and D akota R a ilro a d —Considerable grading is done on this
road, and twenty two miles will be finished this year. It is East and West across the
State.
7. The W inona and St. P eters R ailroad. —This line is East and Wes . across
the entire State, and will be 250 miles. It is completed 105 miles, and will be
finished to the Minnesota River, 140 miles, by the close of 1868.
>■ 8. The Southern Minnesota R a ilr o a d —1 his line is from La Crescent up the Valley
of Root River to the western toundary of the State. It is finished thirty miles, and
will be 25 * miles in length.
9. The Chicago and S t. P a u l R ailroad. —This is to be constructed along the
Miss ssippi River to the southern boundary of the State, and has been endowed by
the State with 10,000 acres of land per mile. A large force is engaged in construc­
tion. and the company have determined to build and equip the road with the least
possible del Ay.
10 T h e S tillw ater an d S t. P a u l R a ilro a d . —This is eighteen miles in length, and
is intended to bring the lumber trade of the St. Croix Valley to St. Paul.

R A IL R O A D S O F T H E D O M I N IO N

OF

CANADA,

The following returns rf the railroads of the Dominion of Canada, for the year
Provinces.

196
145

Cost of Railroads aDd
equipment.
$144,*12,853
7,511,9t0
6,326,266

2,529

$158,750,029

Length in
miles.

New Brnr swick.
I'- ova Scotia.......
...
Total....................................................

Receipts Expenses
per
per
mile.
mile.
$3,2-33
$5,076
1,062
780
1,460
1,269
4,559

2,930

Net.
earnmgs.
$1,843
284
191
1,629

The cost per mile of railroad was, in Ontar o and Quebec, $66,208 ; in New Bruns­
wick. $38,326 ; and in Neva Scotia, $43,629, or, in the Dominion, $62,772.
The relations of earnings to cost in the several Provinces was as follows :
Gross earnings per cent.......
Workiug expenses per cent,
N et earnings........................




O. & Q. JN. Bruns. N. Sco. Total.
, 7.67
2 79
3.35
7.24
. 4.48
2.04
2.91
466
. 3.19
0.75
0.44
2.53

1868]

P U B L I C DE BT O F T H E U N I T E D STATES,

479

PUBLIC DEBT OF THE UNITED STATES.
Abstract statement, as appears from the books and Treasurer’s returns in
the Treasury Department, on the 1st of May and 1st of June, 1868:
DEBT BEAKING COIN INTEREST.

May 1.
June 1.
Increase.
5 per cent, bonds....................................$215,947,400 00 $221,812,400 00 $4,865,000 00
6

44

6
6

“
44

’07 & ’68 .............................

8,688,24180

8,5S2,641 80

Decrease.

.........

105,600 0J

1881........................................ 283,677,200 00 283,677,200 00
...............
(5-20’s ) ................................. 1,442,065,450 00 1,494,755,600 00 52,690,150 00
Navy Pen. FM 6 p.c..............................
13,000,000 00
13,000,000 00
...............

T otal............................................. 1,963,378,291 80 2,020,827,841 80 57,449,550 00
DEBT BEARING CURRENCY INTEREST.

6 per ct. (RR ) bonds..........................
3-y’arscom. int.n’tes..........................
3-years 7-30 n o te s...............................
3 p. cent, certificates..........................
Total .

...................

$23,982,000 00
44,573,680 00
163,490,250 00
28,330,000 00

$25,902,000 00 $1,920,000 00 $ .......
21,004,S90 00
............ 22,968,790 00
105,610,610 00
............ 57,879.600 00
50,01*0,000 00 21,670,000 00 ..................

260,375,930 00

203,117,540 00

57,258,390 Co

MATURED DEBT NOT PRESENTED FOR PAYMENT.

7-30 u. due Aug. 15,’67.
6 p. c. comp. int. n’es.
B'ds of Texas ind’ty.
Treasury notes (old)..
B’ds of Apr. 15, 1812..
Treas. n’s of Ma.3,63.
Temporary loan.........
Certifi. of indebfess

$1,075,950 00
4,745.280 00
256,0 0 00
155,461 64

$947,500 00 $.
$128,450 00
8,012,360 00 3, i67,080 00
................
256,000 00
155,211 64 ................
250 00

Total.

........

...........

6,000 00

6,000 00

616.192 00
1,0^2,400 00
IS,000 00

555.492 00
883,639 00
18.000 00

................
................
............

7,905,283 6410,834,202 64 $2,92S,919

60,706' 04
148,761 00

00

DEBT BEARING NO INTEREST.

United States notes.
Fractional currency. ,
Gold certi. ofdeposit.

....... $356,144,727 00 $356,144,212 00
.......
32,450,4*9 94
32,531,589 94
.......
19,357,900 00
20,298,180 00

Total

407,953,116 94

$.
81,100 ( 0
940,280 GO

$515 00

40S,973,981 94 1,020,865 CO

RECAPITULATION.

$

$

$

4

Bearing coin interest.............................1,963,378,2*1 SO 2,020,S27,641 80 57,449.550 00
................
Bearing cur'yinterest............................. 260,375,930 (X) 203.117,540 00 ............
57,258,390 66
Matured d e b t .................................. .
7,905,2s3 6t 10,834,202 64 2,928.919 00
................
Bearing no interest........................ ........ 407,953,116 94 408,973,981 94 1,020J65<0
............
Aggregate................................................ 2,639.612,622 33 2,643,753,506 38 4,140,944 00 ..................
Coin & cur, in Treas............................... 139,083,794 82 133,507,679 64 ................ 5,576,115 18
Debt less coin and cur............................2,500,528,827 50 2,510,244.860 74 9,r’16 059 18 ....................

The following statement shows the amount of coin and
the dates in the foregoing table :

currency separately at

COIN AND CURRENCY IN TRIARCHY.

......................... ..
..............................

C oin........
Currency.

Total coin & curre’ y ........................

$1 >6,909,658 00 $ 0,223,55') 31 $ .............. 16,681,098 60
32,174,136 82
43,279,12) 3311,1(14,933 51
.............
139,083,794 82

133,507,679 64

.......

. 5,576,115 lg

The annual interest payable on the debt, as existing May 1 and June 1
1868 (exclusiveof interest on the compound interest notes), compares as follows :
ANNUAL INTEREST PAYABLE ON PUBLIC DEBT.
C oin—5 per cents..............................

44

6 “

“

6
6

“

44

67 &’ 68 ......................

6 44 1881.....................................

“ (5-20'ri).........................
44 N. P. F ........................

Mayl.
June 1.
Increase.
$10,797,370 00 $11,040,620 00 $243,250 00
52f,,294 ?0
514.958 59
...........
17,020,632 00

83,523,927 00
780,000 00

17.020,6 2 00

.............

Decrease.
$...
5,336 00

89,6*5,336 003,161,409 00
780,000 00
.........................

Total coin interest........................... $1’5,642,2’3 50 $119,041,546 50 $3 399.323 00
per cents.......................... $1,438,920 00 $1.554 129 00 115,200 00
44 7.30 “
..........................
11,493,364 10
7,709,577 35
............ 3,7:3,780 75
44 3
44
..........................
849,900 00 1,500,000 00 650,000 00

C u rren cy—6

T o ta l cu rre n c y in t e r ’t ................................ $13,782,184 10 $10,763,697 45




*.018,486 75

48.0

JOU RN A L O F BA N K IN G , CURRENCY, AND F IN A N C E .

[June,

JOURNAL OF B A N K I N G , CURRENCY, AND FINANCE .
Returns of the N tw York, Philadelphia and Boston Banks-

Below we give the returns of the Banks of the three cities since Jan. 1 :
NEW YORK CITY

Date
January 4. $244,741,297
,'o <.170,723
January 11
January 18 . 2-.fi,033.933
.
January 2c .. 258 392,101
.February i .... 2fi(y415 613
Februuy 8... -70,555,356
. February 15 ... 271,015,970
February 21 ... 267.763,643
'February 29 . 267.240,618
March '7 .......... 269,156,636
March 14.......... 266,816,0- 4
March 21......... 261,416.90)
257,378,247
March 28
254.287,891
A pri I 4
April 11. —
252,936,725
Ap i l l s .......... 254,817,916
April 25 ......... 252,314,617
Mav 2 . . . . 257.623,672
Mav 9 .......... 265.755,883
May 16.......... 267,724,783
Ma. 23.......... 267,381,279
May 30 .......... 268,117,490

Specie.
Circulation.
Deposits.
$12,724,614 $34,134,391 $187,070,784
19,222.856
34,094,137
194.535.525
23,191.867
34.071.004
205,883 143
25,106,800
210,093,084
34,0-2,762
23,955,320
44,062,521
213 330,524
22.823.372
31,096,834
217,844,5 8
21,192,955
216,759,828
34.043,206
34,100,023
22.513,987
*09,095,351
22.041,642
34.0 6.223
208,651,578
34,153 957
207,737,080
20.714,233
19,744,701
34,218.381
5.01,1S8,470
17.91-1.308
34,212,571
191.191.526
34.190.808
186,525,128
17,323,367
17,077.29)
34.227,108
280.956,846
34.19), 272
179,851.88)
16,343,150
16,776.542
34,218,581
18',832,523
34,227,624
180,307,4S9
14,943,547
191.206.135
16.166.373
34,114,843
34.205,409
21 286,910
199,276,568
20,939,142
84,193,249
201,81 *,3C5
34.1 a3 ( 38
20,479.947
2 2.507 550
34,145,606
17,861,088
20',7 40 , 961

L. Tend’s.
$62,111,201
64,753,116
66.155,241
67,154,161
65,197,153
55,846,259
63,471,762
69,868,930
58,551,607
57J'l 7,044
54,738,866
52,261,086
52 123.078
51,709,706
51,982,609
50.833,660
53,866,757
57.863,599
57.541,827
57 613,095
62,233,002
65,633,904

A{r. d e a r ’s:®.

Circulation.
$ ! 0.639,000
10.639,096
10,641,752
10,645,226
10,638,927
1".635k926
10,663,328
10,632,495
10.634,484
10.633,713
10,631,399
10,6)3,613
10.643,606
10.642,670
10 640,932
10,640.479
10.640,312
10,631,(41
10.629,0 5
11),03-2,11(5
10,80:,270

Deposits,
$36,621,274
37,131,830
37,457,089
37,312,540
57.922,287
37 396,653
37.010,520
30,453,414
35,798,314
31,S26.S61
94,523.550
33,836,996
32,428.390
31,278,119
32.255 671
33,9*0.952
34,70V 10
35,109,937
36.017,596
36.030 063
36,01.0,-97

$4S3,266,304
553,8S4,525
619,797.369
528,503.223
637,449,923
550,521,1S5
452,421.592
705,109 784
619.219,598
691.277,641
649,482,341
557.843,908
567,783,138
493,371,451
623,713,923
6 2,784,154
588,717,892
507,0*8,567
480, ISO,90S
488,73*.142
602,118,248

PHILADELPHIA BANK RETURNS.

Date.

Lccral Tenders.

January 11....... _____

16,037,995

............

16,630,937
17,064,18»
17.063,716
16,9/J.941
17,573,149
17.877.877
17,157,954
16,' 62,299
15,664.946
14.348,891
13,2 8,625
14.194.385
14,493,287
14.951 1"6
14,990.83-*
15,166.017
15.381,5 5
15,823,099

.............
............
February 15.. .. . . . .
..
February 22.,.
............
............
War h 14............ ..........
March 21 .......... ............
............
A p ril 4 .............. ...........
.........
Arril 20................ ............
April 27
....... ............
Mav -4.............. ..........
.
May 11..............
7/a- 18.............. ..........
11 y £5— • .. ..........

Loans.
$52.00 .304
52,593,707
5 =,013,196
52,325,59)
52,604,91 n
52.672,448
52,632,-46
52,423,166
52,459.757
53,«81.665
53,367,611
53.617,337
53.450,878
52,209,234
52.--.56,949
L2.‘ 8 ',780
52,812 6 3
53,333.740
53,771,794
53.49',583
. 5?. 63,225

Specie.
$235,912
400.615
320.973
279,393
24», 073
287.878
263,157
204.929
211,365
232.180
251 051
229,518
192 858
215.835
250,240
222,-29
204.699
314,366
397,778
8 3,525
280,802

BOSTON BANK RETURNS.

(Capital Jan. 1, 1866. $41,900,000.)
Loans.
Specie.
Tenders.
Deposits.
ramvuy 3 .............$31,960,249 $l,466,v46 $15,543,169 $40,850,022
'auuary 13 ........... 97,800,239
1,276,187
15.560,965 41,496,320
rannary 20 ........... 97,433,«63
926,942
15,832.709 41,904.101
ranuary 27 ........... 97,433,435
811,196
lo,349,037 43,991,70
i’ebmaiy 3 ........... 96,8*5.200
777.627
16,738,229 42.891,128
February 10 ........... 97,973,9 6
672,939
16,497.643
42.752,0f.7
February 17
.... 98,218.628
605, '0 16.5614 1
41 502,550
iVbru.r, 24.......... 97,469,435
610.953
16.3'9,501 40,387,614
torch 2................. 100,243,692
633,8 2
16.804,846 40,954,936
^arcu o ................101,'59 361
f-67,174 15,550,696
39,770.418
torch 16. ...... .
101,499,6-1
918.485
14,5.2,342 39.276,514
torch 23................ 100,109,595
79S,6()0
13,712,560 37,022.546
larch 80................. 99,132,268
685.( 34
13,736,032 3«. •84.040
LDrii 6................. 97,020 9*5
731,5 0
13,004,924 36,' 08,157
iiiril 13................. 97,850,230
873,487
12,522,035 36.422.929
; L \ \ 20................. 98.91*6.805
>-05,489 11,905,603
36,417,890
27................. 98.002,343
577, 63
12 218 545 36,259,946
ft„v 4................. 97,621,197
815,469
12,656,190 87,035,406
jfgv H .............. 97,332,283
1.133.608
11.962,868 87,358,716
;iav IS................. 96,9:8,524
1,180,881
12,199,422 37.844,742
lay 25 ................. 07,041,720
1,018,819
1*,848,141 88,398,141




/----- CirculationNational.
State.
$>4,636,559 $228,730
24,757,965
227,953
24,70",001 217,372
14,564,' 06
226,27 8
24,628.103
221,.' t 0
24.850,926
221,700
24,850,055
220,452
24,686,212
216,490
24,876,089
2 5,214
24,987,700
210,162
25,062,418
197,720
25.094.2.53
197.239
24,983,417
197,079
25,175,194
168.023
24,213,014
157.013
24.231.053
266.902
2.5,231,978
101.331
25.203.234
160,385
25,225.173
145,248
25.234
465 160,241
25,210,660
160,151